WHAT IS A CBDC?
A Central bank digital currency (CBDC), is a form of electronic money issued by the Bank of England. In the UK, this will be introduced as BRITCOIN.
Why should you be worried about CBDCs?
CBDCs will eliminate your ability to transact anonymously, giving complete traceability and transparency to the Bank of England and government.
Eventually, there will be no option to hold physical cash in a CBDC economy. You will be unable to withdraw your money and hold it physically. You may think this is already the case using chip & pin and touch-less, but CBDCs are different. They can be made programmable, enabling several worrying properties to be implemented.
CBDCs would enable a currency expiration policy. Your money could be programmed, so that if you don’t spend a certain amount within a certain time frame, it’ll expire or attain a negative interest rate. China has already tested expiry policies with its own CBDC. This will limit your ability to save.
CBDCs would also lead to commercial banks having a diminished role. It’s likely lending decisions will be made by the Bank of England or government, thus giving them complete control over you and your money.