Episode Details

In this episode, we present an audio version of Bitcoin Policy UK's response to the Bank of England’s consultation on privacy and the digital pound (CBDC).

🔑 Key themes covered:

• Why we remain opposed to the introduction of a UK CBDC, seeing it as a “solution in search of a problem.”
• The unique privacy features of physical cash, and why a digital pound cannot replicate them.
• The risks of a tiered wallet system that trades usability for personal data, undermining both privacy and financial inclusion.
• Concerns over the Bank’s proposed “pass-through” model, which could create a surveillance honeypot of personal and transaction data.
• Why we argue that if any digital pound were to be created, the “least worst” option would be a Chaumian e-cash system, preserving anonymity and functioning as a true digital bearer instrument.
• The discriminatory nature of KYC requirements in CBDCs, which would exclude many of the very people cash currently serves.
• Broader economic and ethical concerns, including conflicts of interest with stablecoin markets and the enormous cost of maintaining a CBDC infrastructure.

📄 Read the full written paper here:
👉  Response to the Bank of England on the Digital Pound

To find out more about Bitcoin Policy UK's work and how you can get involved, visit:

https://bitcoinpolicy.uk/