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Britain Ponders Controversial Digital Currency

By Stefan J. Bos, Chief International Correspondent Worthy News

LONDON (Worthy News) – Britain’s finance minister has confirmed that Britain wants to explore a Central Bank Digital Currency (CBDC) that critics say could lead to a global cashless society in which all transactions are traceable by the government.

Jeremy Hunt, known as the Chancellor of the Exchequer in Britain, made clear that talks are underway to change the financial system during economic difficulties.

In a written statement to Parliament obtained by Worthy News, Hunt said he is “bringing forward a consultation in the coming weeks to explore the case for a central bank digital currency—a sovereign digital pound—and consult on a potential design.”

He added that the “Bank of England will also release a technology working paper setting out cutting-edge technology considerations informing the potential build of a digital pound.”

Hunt stressed that “modernizing the regulation of consumer lending, reform will update consumer protections and ensure they work well in a modern and increasingly digital economy. It will also increase the accessibility of credit products by allowing firms to better serve consumers through more innovative credit products.”

In contrast to Bitcoin, the cryptocurrency which functions on a decentralized basis, a CBDC would be similar to the traditional currency issued by a central bank, such as the Bank of England.

Experts say the CBDC could be programmed to see and limit people’s transactions. It would also face the same inflation issues if the central bank decided to issue more of it — like printing cash, critics claim.

Hunt has earlier faced criticism over his previous opposition to Britain’s exit from the European Union, of Brexit, and for advocating China-style lockdowns during the coronavirus pandemic.

Hunt has defended his record and says his current activities as a government member aim to ” securing the UK’s status as one of the most open, dynamic, and competitive financial services hubs in the world.”