In this episode, we present an audio version of Bitcoin Policy UK's response to the Bank of England’s consultation on privacy and the digital pound (CBDC).
🔑 Key themes covered:
- Why we remain opposed to the introduction of a UK CBDC, seeing it as a “solution in search of a problem.”
- The unique privacy features of physical cash, and why a digital pound cannot replicate them.
- The risks of a tiered wallet system that trades usability for personal data, undermining both privacy and financial inclusion.
- Concerns over the Bank’s proposed “pass-through” model, which could create a surveillance honeypot of personal and transaction data.
- Why we argue that if any digital pound were to be created, the “least worst” option would be a Chaumian e-cash system, preserving anonymity and functioning as a true digital bearer instrument.
- The discriminatory nature of KYC requirements in CBDCs, which would exclude many of the very people cash currently serves.
- Broader economic and ethical concerns, including conflicts of interest with stablecoin markets and the enormous cost of maintaining a CBDC infrastructure.
📄 Read the full written paper here:
👉 Response to the Bank of England on the Digital Pound
To find out more about Bitcoin Policy UK's work and how you can get involved, visit:
https://bitcoinpolicy.uk/
