The UK Tax Reform Council has launched a campaign against the Bank of England’s plan to introduce a central bank digital currency (CBDC). The nonprofit warns that such a move could seriously harm privacy and lead to intrusive changes to the tax system.
The newly formed Tax Reform Council includes financial economist John Chown, co-founder of the Financial Research Institute, on its advisory board. The Tax Reform Council believes that the introduction of a CBDC will lead to increased government oversight, more interference from the tax authorities, and an increased risk of cyberattacks on the country’s monetary system.
We are pleased to announce the formation of our Advisory Board. pic.twitter.com/6Lpmt3oJ0U
— Tax Reform Council (@TaxReformUK) August 23, 2022
The think tank shares similar concerns to the British Bitcoin (BTC) community, which has been vocal in its criticism of the CBDC. Jordan Walker, co-founder of the UK Bitcoin Collective, explained that “the deployment of a CBDC in the UK is dangerous in terms of fronts. We would hand over more control of our money to the government and the central bank.”
“This links the monetary system even more to the political system, which has caused serious problems in the past and present. Instead, we should strive to keep money and politics separate.”
Advisory board economists including Patrick Minford, Julian Jessop and Chaun said that “the Bank of England’s decision to create a UK CBDC raises a number of very real concerns.” The group is looking to raise awareness of the “heightened government oversight” that CBDCs can offer.
CBDCs claim to offer greater financial inclusion, reduced costs for businesses and consumers, and improved security. However, Bitcoin already offers these benefits and more: El Salvador has banked part of its population with its Bitcoin law, and Bitcoin also provides an outlet for those living in authoritarian regimes.
In the UK, the Treasury and the Bank of England are recruiting for CBDC positions. The Bank of England has stressed the “need” for a digital version of the British pound despite opposition from the wider crypto community.
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According to the Tax Reform Council, every personal transaction made using a CBDC will be recorded in the private ledger of the Bank of England, giving the tax officer unprecedented access to the financial history of individuals. The press release states that this is already happening in China with CBDCs in RMB.
Walker sounded the alarm: “I believe we are closer to rollout than many think, and if we don’t have higher education on this topic, we will see many people in this country unknowingly be drawn into this digitized money control.”
Credit : cointelegraph.com
