• The UK Tax Reform Council has launched a campaign against the Bank of England’s plans for a central bank digital currency (CBDC).
• The think tank is concerned that implementing a CBDC would lead to increased government surveillance, greater intrusion from tax authorities and heightened risk of cyberattacks.
• The U.K. Bitcoin community shares similar concerns and warns of the dangers of handing over more control of money to the government.
UK Tax Reform Council’s Concerns Over CBDC
The United Kingdom Tax Reform Council has launched a campaign against the Bank of England’s plan to introduce a central bank digital currency (CBDC). The nonprofit organization warns that such a move could seriously harm individual privacy and lead to intrusive changes to the taxation system.
Advisory Board
The freshly formed Tax Reform Council includes monetary economist John Chown, co-founder of the Institute for Fiscal Studies, on its advisory board.
U.K Bitcoin Community’s Worry
The U.K Bitcoin community shares similar concerns to those voiced by the Tax Reform Council and have been vocal in their criticism of CBDCs. Jordan Walker, co-founder of the U.K.’s Bitcoin Collective, explains: “the rollout of CBDCs in the U.K is dangerous on a matter of fronts,” adding “we would be handing over more control of our money to the government and central bank.”
Dangers Of Handing Over Control
Walker believes handing over control ties “the monetary system even closer to the political system which has caused significant problems in past and present”, warning that instead we should be aiming to separate money and politics”.
Conclusion
With increased concern being raised about CBDCs, it remains unclear what effect they will have on individual privacy as well as financial security if implemented by Bank Of England in future