• The UK Tax Reform Council has launched a campaign against the Bank of England’s plans for a CBDC launch, warning that it could lead to increased government surveillance and cyberattacks on the nation’s monetary system.
• The think tank’s Advisory Board includes monetary economist John Chown from the Institute for Fiscal Studies.
• The U.K.’s Bitcoin community has been vocal in their criticism of CBDCs, citing an increased risk of government control over money and politics.
UK Think Tank Launches Crusade Against ‘Surveillance’ CBDCs
The United Kingdom Tax Reform Council (TRC) has launched a crusade against the Bank of England’s plans to introduce a central bank digital currency (CBDC). The nonprofit organization warns that such a move could seriously harm individual privacy and lead to intrusive changes to the taxation system.
Advisory Board Economists Concerned About Privacy
The TRC advisory board economists, including Patrick Minford, Julian Jessop and John Chown from the Institute for Fiscal Studies, have stated that “the decision by central banks to issue CBDC’s is concerning as it could lead to increased government surveillance capabilities which are beyond what is necessary or appropriate in a free society”. They also raised concerns about cyberattacks on the nation’s monetary system if this plan was implemented.
U.K.’s Bitcoin Community Vocal In Their Criticism Of CBDCs
Jordan Walker, co-founder of the U.K.’s Bitcoin Collective, explained that “the rollout of CBDCs in the U.K. is dangerous on a matter of fronts.” He believes that it would hand over more control of money to the government and central bank and tie “the monetary system even closer to the political system which has caused significant problems in the past and present.” Instead he suggests aiming “to separate money and politics”.
Opponents Fear Increased Government Surveillance
Opponents fear that implementing a CBDC would lead to increased government surveillance, greater intrusion from tax authorities and heightened risks of cyberattacks on financial systems worldwide. It remains unclear whether these fears are justified or not but they highlight an important debate around state-led digital currencies which will continue as countries consider their own approaches towards cashless societies in future years.
The debate around Central Bank Digital Currencies continues as opponents voice their concern about potential impacts on privacy rights from governments introducing such currencies into circulation worldwide