Call for Evidence for the Inquiry on Central Bank Digital Currencies (CBDCs).

1. What are the main issues driving central banks to explore CBDCs?

Having been personally been involved in cryptocurrencies since 2015 and having researched the history and evolution of money and currencies, I feel I needed to be involved in this Call for Evidence.

Central Banks have now operated a wholly fiat monetary system since 1971, allowing governments to inflate debt at an ever-increasing rate. The world has not had money in its real sense for a long time, only currencies supported by trust. The rapid debt expansion in the past few years has become a necessity to counter the instability of the fiat system, so a migration to a new digital system will be hailed as a financial system saviour. As central banks (some privately owned such as the Federal Reserve Bank) work in closer and closer concert with their respective governments, the IMF, the World Bank, whom in turn are working closer with technology companies, there is a perceived need to usher in a new “stable” financial system which can also track every citizen with every digital currency unit to exact further control on the population.

The creation of cryptocurrencies as an alternative means of store of wealth and means of exchange for the world’s citizens has been seen as a huge threat on the current financial system, and this sector has been systematically demonised and manipulated to deter further adoption and to effect further transfers of wealth from individuals to institutions via co-ordinated market control. Cryptocurrency technology has been taken to another level to make it programmable and fully controllable for Central Banks’ uses.

2. What are the main benefits and risks of a CBDC?

Benefits include:
- A hiatus in systemic demise of the financial system during migration
- A reduced need for banking presence
- Increased difficulty to effect unwanted transactions in society at lower levels due to society going cashless (i.e. illegal activities). However, such illegal activities will still be sanctioned and permissible at the highest levels of government, banking, top companies and high wealth individuals.

Risks include:
- CBDC will necessitate a cashless society so those replying on cash/legacy systems will be left behind
- Individuals will ultimately have to be personally tied to technology to access society on a financial level, i.e. smart phone, smart device, implants, etc
- CBDC supply will have to be controllable, i.e. not of finite supply, to control inflation levels and facilitate any amount of government borrowing requirement. This risk that the digital currency is used in a fashion to satisfy high level government or banking needs ahead of the impact such usages will have on citizens.
- Any interruption to digital networks (power outages, data centre disablements, solar flares, government decrees, hacking, Denial of Service Attacks, etc) will render the financial system useless until continuity is achieved. How will citizens transact under such scenarios?
- Programmable digital currency leads to obvious privacy and security risks, as well as human rights transgressions in the events of currency being disabled/withheld/frustrated for the owner under certain circumstances.

3. Could the proposed benefits of a CBDC be achieved through improvements to existing payment systems?

Yes, though it is a matter of realisation that the problems with the existing payment system is due to operating a fiat currency system and a banking system which does not work for people but works for its own ends for societal control and wealth transferring away from the general population. Once this is clearly seen, a CBDC makes no material difference.

4. How should the Bank of England and HM Treasury address concerns over privacy and traceability of payments when exploring CBDC design?

Both the BoE and HM Treasury are well aware of the privacy and traceability concerns of CBDC. They should make CBDC private and anonymous if they have concerns. However, these entities will see CBDC technology as a golden-egg laying goose in a world that has pursued data collection and the control that affords (see Facebook, Google, Twitter, etc and their policies on censorship and coercion through ad and post serving to customers).

5. What effects might a CBDC have on the financial sector?

It will bring about the centralisation of finance so that everyone and every entity in the system is under the all-seeing Central Banks’ eye and the world will be closer to the World Economic Forum’s goal of the new vision for the globe.

6. What effect might a CBDC have on competition and innovation in the payments and fintech sectors?

It will have an effect in so much as legacy systems will have to adapt and migrate to the new digital currency, but the same banking principles will apply behind the façade so competition and innovation will continue as before.

7. How might a CBDC affect monetary policy?

The Central bank will allow monetary policy to be effected more quickly, through a few clicks of a mouse to control the digital currency.

8. How might a CBDC change the Bank of England’s role and responsibilities?

A CBDC has the potential for the BoE to overtly or covertly increase its role and responsibilities in society. Rightly or wrongly, and with the government at its beck and call to change laws to suit the needs of the BoE, it could coerce, incentivise or manipulate the economy through implementation of certain currency unit expiration dates, issuance of universal income, the setting of certain currency units to be only valid for certain uses/purchases. It could freeze any currency unit anywhere in the world for any “just” or political reason.

9. How should HM Treasury and the Bank of England engage with the public on the research and development of a CBDC?

To start with, they need to be honest about the current system and how its real failings will not be repeated with the introduction of a CBDC. If these failings cannot be addressed (and they will not be if a new CBDC is just a digital fiat currency) then all pros and cons should be aired and debated, openly, in the public arena. There should also be the creation of a publicly selected and open public oversight committee that will analyse and query anything that may constitute being in the public interest. This committee should permanently oversee the CBDC to ensure the agreed criteria is being complied with.

10. How might CBDCs affect the economic foreign policies or geopolitical influence of different countries and economic areas? Are there implications for the effectiveness of economic sanctions?

There are huge implications for geopolitical influence and the effecting of sanctions to a high degree. With this power comes much responsibility, which is highly concerning when one analyses this country’s foreign policies and geopolitical moves over the past couple of decades. No doubt with this knowledge and the arrogance carried by the government and Civil Service, a CBDC cannot come soon enough.


30 September 2021