The major trans-Atlantic central banks continue to make plans for central bank digital currencies (CBDCs) which will be structured and used so as monopolize deposits and put commercial banks out of the business of lending. A report in London’s Daily Mail updates the thinking of Chancellor of the Exchequer Rishi Sunak about a CBDC of the Bank of England. Sources in the Treasury told the Mail that “Britcoin” would pull commercial bank accounts into the Bank of England; and “would allow the Bank to give the economy a boost in times of crisis by paying the ‘Britcoins’ directly into people’s bank accounts.” This is the “inflation power” of the CBDCs, but they could also be used to take currency back out of the accounts of households and businesses, and create deflation and austerity.
The sources told the Mail that in Sunak’s plan the digital accounts would be liabilities of the central bank, tending to make the Bank of England a deposit monopolist and threaten the existence of commercial banks. Referencing the obvious danger that all financial experts are aware of, the Mail reports that “There are also fears the introduction of Britcoin would lead to higher loan and mortgage rates as millions of people switched cash to central bank digital currency, eating into the amount of money high street banks have on deposit to lend to borrowers.”
