YoS The dead digital pound in the water?
More than 100 countries analyze the creation of their own digital currencies. China already has one. The EU is developing a digital euro to the rhythm. But the Bank of England? It seems to be attacking the opposite path to the rest of the world.
Andrew Bailey told parliamentarians about the Treasury Committee that he would need to “convince” Greenlight a launch, which the bank already said that it could not happen until some now in the “second half of the current decade” anyway.
Is this a lost opportunity? Even a case in which the conservatism of the governor threatens to leave the British in the digital dark age?
First, you should explain what the digital pound is really. Digi-Pounds (that is not the official name; I am not sure that we still have one) would be a currency issued by the bank that could be stored in a digital wallet provided by a company such as, for example, Apple. This would allow you to pay things directly, without the need for the card that must be configured to use Apple Pay. People could also pay you by the same medium. PD, Apple's CEO, Tim Cook, does not pay me or me Independent for the mention. I am using Apple Pay as an example because it is a service that you use.
Bailey is not impressed with the idea of this new form of money. His favorite option is to help the market improve digital payment technology, which he could offer “great benefits.” Fraud reduction, lower costs, faster payments to SMEs (small to medium -sized companies), which at this point are probably saying that the opportunity would be good.
“That is a sensible place to do so because that is where most of our money is,” said the governor. But here is an idea: why not simply do both? Is that really so difficult? Or is the bank once again in the “I can't do” mode?
It is true that there are legitimate concerns about digital currencies. The skeptics care about vulnerability to piracy. Fears have also been expressed about making it easier to wash money, even to facilitate terrorist financing. The criminals took bitcoin with press. Lately, they have favored the so -called “stablecoins”, whose value is linked to an underlying merchandise or an existing currency such as the dollar.
On the other hand, some critics have expressed fears about digital currencies used to facilitate government sword. This has been a great concern with the Chinese version given the obsessive interest in what its citizens do, they say and even think of the government of that country.
But each new technology comes with advantages and disadvantages. It would be better for Bailey to accept that and roll with the blows. Bitcoin and their type already have a legion of fans in this country. If people like the concept of digital currencies issued by the Central Bank, there would be nothing that prevents them from using digital euros if they arrive and when they arrive. There are already points of sale in London that accept the equivalent document (and dollars and yen while we are in that). Here is a possible point of sale for your business: “We accept the digital euros!”
At this time, the Central Bank looks flat, a very obvious lag, largely thanks to the conservatism of the governor.
I suspect that part of the precaution of Bailey dates back to his time at the head of the financial behavior authority, a rather ungrateful task, although well paid, in the best case. His CEO tends to blame for everything and credit for nothing.
The launch of a new form of money is intended to create challenges, and once again it will be Bailey's head in the block if something goes wrong.
Recently, there have been suggestions that the bank could Cesar or at least file the work it has been doing in a digital pound. That would be a mistake. Digital currencies are approaching. The bank must accept that and prepare for the future. The governor needs to get his legs from the mud in which they are trapped.
