How To Tax And Account For Every Bit Of Cash You Have
In part 1here I looked at how central bank digital currencies are coming and sooner than most expect.
About a year ago the Bank of England released a paper on the Opportunities, Challenges, and Design of Central Bank Digital Currencies.
This week, the Financial Times reported UK Considers Creating Central Bank Digital Currency.
The Financial Times commented the “Aim would be to future proof sterling against cryptocurrencies and improve the payments system” If you don’t want the FT paywall, here is a link to the Metro article here
The idea that one can future proof fiat currencies is of course ludicrous.
Our chancellor Rishi Sunak is calling it Britcoin, presumably to enlist the patriotic fervour of the Brexiteers, now that the Conservatives have so royally shafted them.
Rishi Sunak told the Bank of England on Monday to look at the case for a new “Britcoin”, or central bank-backed digital currency, aimed at tackling some of the challenges posed by cryptocurrencies such as bitcoin. A Bank of England-backed digital version of sterling would potentially allow businesses and consumers to hold accounts directly with the bank and to sidestep others when making payments, removing the lenders’ role in the financial system. (all sounds good, but the devil is in the detail, as they say.)
“We’re launching a new taskforce between the Treasury and the Bank of England to coordinate exploratory work on a potential central bank digital currency (CBDC),” Sunak told a financial industry conference. “The Government and the Bank of England have not yet made a decision on whether to introduce a CBDC in the UK, and will engage widely with stakeholders on the benefits, risks and practicalities of doing so,” a Bank of England spokesman said.
So what About Physical Cash- The pound notes we all love to feel in our pockets and purses? The BoE said a digital version of sterling would not replace either physical cash or existing bank accounts. Do you believe them?
The fact is, once central banks can track every penny, they will track every penny. HM government will know where every penny is coming from and going to and tax everything.
As I observed in part 1 on ECB digital money, they will sell this scheme as a necessity to combat drugs, tax evasion, organised crimeand a necessity for fairness. Once in place, if governments ever decide people are “hoarding” money they will consider putting time limits on it to force people to spend it.
It’s coming. And the pace seems to be picking up. After all,no one wants China to be the first! And don’t forget, this liberty conveniently lifted from you will dovetail very nicely in the Covid19 Passport racket that is also coming. “No vax pass? Then you can’t have your money, its to keep you safe you understand”.