The results of a recent survey conducted by Redfield & Wilton Strategies commissioned by Politico are here. They suggest that most British adults are still concerned about the digital currency issued by the Bank of England (BOE).
Is the Digital Pound more harmful than beneficial?
Two and a half thousand British adults surveyed in early August expressed doubts and concerns. This about the inherent societal benefits of CBDC issuance by the Bank of England.
According to the figures, 30% of participants believe that the digital pound from CBDC is “harmful rather than beneficial to the UK“. On the other hand, 24% think it could be beneficial. The remaining 46% have not decided.
An in-depth analysis of specific concerns about the digital currency showed that 73% of participants would “fear the threat of hackers and cyber attacks. 70% fear user privacy, 62% fear the government’s ability to seize their money, and 45% the environmental impact”.
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For several years of research
It would be the first time a digital currency has been issued by a central bank in the United Kingdom. This if the initiative were to overcome barriers to public acceptance and be introduced across the country.
The United Kingdom has been researching the concept of CBDC for the last few years. In April, in cooperation with the Bank of England, Her Majesty’s Treasury launched a preliminary working group. This to understand the “design, implementation and operation” of CBDC issues.
Tom Mutton, Head of Fintech at BOE, pioneered the future of the CBDC. Recently, he shared his views on the benefits of implementation. Specialy about the “payment competition and diversity to opportunities to promote financial inclusion and privacy.”
As early as June, Chancellor of the Exchequer Rishi Sunak promised a “comprehensive set of financial services reforms” over the next few years. The CBDC is at the top of the list of priorities.
Four key topics
Consequently, responding to the Bank of England’s discussion paper on the CBDC’s perspective to 2020, respondents identified four key issues: technology and finance companies, individuals, paying companies, and others.
These include the need to develop further and better formulate a “use case” for the CBDC. Similarly, the need for the CBDC to promote financial inclusion and protect privacy. Also the principles of BOE design are complex but challenging to implement. And functional capabilities, including offline payments, these were all considered vital.
Based on the discussion paper, Mutton concluded that “there is an almost consensus that the pros and cons need to be thoroughly examined, that there is a need for broad involvement in gathering evidence, and that open consultation is necessary before any conclusions can be drawn.”
Conclusion on Digital Pound
People are afraid of digital pound for several reasons. All of them are justified. No one wants to have a potential currency that will be checked from start to finish.
