The UK government is pursuing the digital pound while bank CEOs restrict access to bitcoin

The UK continues to show its desire for a digital pound as its businesses scramble to access Bitcoin to restrict.

The Bank of England and the UK Treasury have released a consultation paper setting out their case for a Central Bank of Retailers (CBDC) digital currency, or “digital pound”. The paper was reviewed by the Bank-Treasury CBDC Taskforce, established in April 2021.

The bank is still examining the introduction of the digital pound, but considers the preliminary work to be justified. At its inception, the digital pound would be a form of sterling used by households and businesses for their day-to-day payments. According to the announcement, the Bank of England and the UK Treasury will be working with stakeholders across the country to get their views on the proposed model.

At the same time, a roadmap was presented by Governor Andrew Bailey and Chancellor Jeremy Hunt detailing their goal of preventing a bank run.

According to a Telegraph report, the two officials have said consumers will be prevented from hoarding the new digital pounds being issued by the Bank of England. To prevent large and rapid outflows from traditional banks, Brits will be limited to transferring a few thousand digital pounds to their accounts. The frictionless nature of digital money is apparently viewed as a potential risk to the stability of the traditional banking system. The previously mentioned consultation paper indicated that this limit could potentially be £10,000.

Just as these developments are taking place, UK bank CEOs are reportedly blocking customer access to cryptocurrencies due to fraud and volatility concerns. Executives appeared before the Treasury Select Committee to discuss the matter.

NatWest Group CEO Alison Rose told the committee that the bank has taken a “pretty hard line” on cryptocurrency due to the stability and volatility of the platforms and the risk of fraud. Social media and technology platforms have been cited as the main source of fraud, but executives also expressed support for new regulations proposed by the UK Treasury.

All these events point to the ability of the UK government, with the help of large corporations, to coerce its citizens into financial obedience through strict regulations regarding the use of every private citizen’s money. The UK continues to make further strides towards restricting and restricting the bitcoin and cryptocurrency industry while pursuing a CBDC system that would realize the worst predictions of this technology.