Commentary
Sovereign digital currency will give the government complete control over the economy of people’s private lives.
The British government announced that it would be phasing in a sovereign cryptocurrency. It also said that citizens would be limited to 20,000 digital pounds. The motivation to move toward a national cryptocurrency backed by the Bank of England is to compensate for a fractured digital payment sector dominated by large private technology companies. The U.S. Federal Reserve and the European Central Bank are also looking into establishing a Central Bank Digital Currency (CBDC) of their own.
British officials said that a CBDC was needed to “avoid the risk of competing, non-interoperable systems operated by tech giants or banks and would drive future innovation.” This statement is an admission that the central bank wants to eliminate competition. Second, it makes a faulty claim that by eliminating competition, they would “drive future innovation.”…