UK To Consult On Central Bank Digital Currency In Coming Weeks (law.com) 39
The U.K. government will bring forward a consultation on the case for a central bank digital currency "in the coming weeks (Warning: source paywalled; alternative source)," Chancellor of the Exchequer Jeremy Hunt said. Bloomberg reports: The Bank of England will also release a paper setting out technology considerations informing the potential build of a digital pound, Hunt said in a written statement to Parliament. Hunt announced the plan as part of a wider set of reforms to spur the U.K.'s financial services industry. BOE officials led by Deputy Governor Jon Cunliffe have become increasingly vocal about the need for so-called central bank digital currencies, or CBDC, which would give consumers and businesses a form of money that's as safe as cash but usable in online transactions. They note a sharp drop in the use of cash is leaving money increasingly controlled by private companies that don't have the explicit government guarantee carried by banknotes and coins.
However, a U.K. parliamentary panel said earlier this year that officials have given no convincing reason it is needed. The House of Lords Economic Affairs Committee. The group, which includes former BOE Governor Mervyn King, said at the time that the project might threaten the stability of the banking system and inject the BOE into controversial debates on privacy. One concern is that it could allow the state to have greater surveillance of people's spending choices.
However, a U.K. parliamentary panel said earlier this year that officials have given no convincing reason it is needed. The House of Lords Economic Affairs Committee. The group, which includes former BOE Governor Mervyn King, said at the time that the project might threaten the stability of the banking system and inject the BOE into controversial debates on privacy. One concern is that it could allow the state to have greater surveillance of people's spending choices.
Question the motivation (Score:5, Insightful)
Modern currencies are already digital. In Western Europe, at least, you can easily make an electronic transfer. New standards will require these to be completed (i.e., money available on the receiving end) in seconds.
So what, exactly, is the motivation behind a "digital pound" or a "digital dollar"? The big difference is that the government wants to be the central clearing house. All transactions would flow through government-run systems, providing complete visibility into everyone's transactions. Financial privacy is already poor; this would destroy the few remnants.
The last time I commented on banking secrecy - how the government ought to need a warrant to see your financial information - I was massively downvoted. Apparently, people on /. like the government having their information. I genuinely don't understand that mentality, because exactly the same arguments can be applied to grant the government backdoors into encryption protocols.
Re:Question the motivation (Score:4, Informative)
The ECB is considering a digital currency and they are talking about such controls. Basically, digital money can be earmarked for a certain purpose, for instance part of unemployment benefits could be earmarked as "food only", effectively making them into digital food stamps. Not a bad idea in itself, but they can potentially do this with every euro in your account. Put limits on how much you spend on things they consider to be "bad": meat, booze, petrol. Or make you spen a certain amount on "good" things.
Not saying that the EU is considering to go that far, but some MEPs are openly talking about the possibilities that I mentioned here, and I really do not want to have to trust on cooler heads to prevail. I do not want to give them the power nor the opportunity to take away my right to vote with my wallet.
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Re: Question the motivation (Score:2)
That will be the excuse. But the implementation will, as always, lean in favor of those in power.
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I'd rather yes, because at least I can choose not to join. There are other payment systems besides MC/Visa, if the companies become too oppressive, people will leave. If the government becomes too oppressive, people will die.
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I'd rather yes, because at least I can choose not to join. There are other payment systems besides MC/Visa, if the companies become too oppressive, people will leave. If the government becomes too oppressive, people will die.
Has anyone ever told you you're a bit melodramatic?
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Not just watching you.
But controlling you.
Did you show at some protest or say something online the government didn't like? They can turn off your financial life in a click.
Already happened in Canada.
"I'm from the government and I'm here to help"
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Not just watching you.
But controlling you.
Did you show at some protest or say something online the government didn't like? They can turn off your financial life in a click.
Already happened in Canada.
"I'm from the government and I'm here to help"
Still humping Ronald Reagan's cold, lifeless corpse, I see.
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Not a troll. This happened in Canada recently.
Fuck yourself for trying to bury the truth.
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In Canada to cut off people finances they had to invoke an emergency powers act, and it was justified as the protestors were anti-vax dickheads illegally blocking roads, making life miserable for residents and disrupting trade to the point of millions per day.
And now there have been hearings making the PM defend his decision.
All of that is entirely reasonable.
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You find it reasonable that people peacefully protesting their government's decisions that they find oppressive should be cut off from their own money with no trial? Just some government dick head decides they're annoying and hits a button?
You're cool with that?
What happens when those same government dick heads cut you off because you protested or posted online or bought a book they don't like or voted "wrong" or they just don't fucking like you?
I hope you're not an American. That would greatly sadden me
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You find it reasonable that people peacefully protesting their government's decisions
Nice idea except the protests weren't peaceful. Blocking roads harms people. It doesn't only affect commerce (which also harms people, but indirectly.)
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Blocking a road is not violent. Hurting someone's or preventing the passage of commerce by simple being in the way is not violence.
It is the epitome of peaceful protest.
By your definition almost anything is violence. I guess writing a mean letter to the government might not be considered _too_ violent. Unless whoever opened it had their feelings hurt, then we need to cut them off from their money, the little bastards! CLICK!
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Bitcoin allows for peer-to-peer transactions without the need for intermediaries like banks, which can help to reduce fees and make financial transactions more efficient. While some people may see this as a threat to the traditional banking system, others see it as an opportunity to create a more inclusive and accessible financial system. Ultimately, it is up to individuals and the market to decide how bitcoin and other digital currencies will be used and integrated into the broader financial landscape.
How that's working out for you at the moment?
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Re: Question the motivation (Score:1)
According to the experts here at slashdot currency is a Ponzi scheme and worth nothing.
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Modern currencies are already digital. In Western Europe, at least, you can easily make an electronic transfer. New standards will require these to be completed (i.e., money available on the receiving end) in seconds.
Yep, pretty much anywhere but North Korea, Iran, Russia and the US (OK, maybe a few extremely poor nations who don't have banking systems) I can transfer money interbank. All your money is already 1's and 0's. This is just a government that is guaranteed to be voted out in the next general election doing things that are never going to happen and wont make any difference because they're just trying to count down the next 2 years without any more scandals. Sunak is committed to doing as little as possible to
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Modern currencies are already digital. In Western Europe, at least, you can easily make an electronic transfer. New standards will require these to be completed (i.e., money available on the receiving end) in seconds.
That does not make the currency digital.
So what, exactly, is the motivation behind a "digital pound" or a "digital dollar"? The big difference is that the government wants to be the central clearing house. All transactions would flow through government-run systems, providing complete visibility into everyone's transactions. Financial privacy is already poor; this would destroy the few remnants.
Look, no. If you don't think that the feds (of whatever country) get that data rapidly then you're not even thinking. Of course they get it all, and of course you're not allowed to know about it, and they're not allowed to tell you. In the US the official method for handling that is called a National Security Letter, but every nation has a similar process.
It does have a potential negative in that the government could refuse to process your transactions. They could alr
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Spooks on Slashdot is my drunken bet, that and the usual dumbasses who will downvote anyone who criticises anything their chosen political party does even though they'd criticise the opposition party if it tried to do the very same thing.
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"The big difference is that the government wants to be the central clearing house."
They're already the central clearinghouse of their own currency!
All your money are belong to us (Score:2, Funny)
and we will decide on how you can spend it.
No more carbon tax credits for this month? You're not allowed to buy any steak for you!
Too bad your obesity credit are also zero. Else you could have bought the pudding.
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Re: All your money are belong to us (Score:1)
Or use alternative currencies. Hence why statists are pushing so heavily to make them illegal and disparage them at every point. Barter societies likely never really existed. Currency whether it was salt, grain or coins has been with us since prehistoric times.
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At a smaller scale yes, even in socialist countries (where I'm from) for larger trades there were a few 'currencies' such as cigarettes or food stamps.
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Congratulations are in order (Score:5, Funny)
What can be done if they try to phase out cash? (Score:2)
Having a bank account in another country isn't much use.
If they were to truly try and replace cash with some kind of digital coin, the only alternative would be some kind of barter system or underground cash currency.
Kind of funny since Bitcoin started as an underground currency, but might usher in a similar replacement for legit currency, only to have an underground paper currency needed to fight back against that.