The government’s consultation on a digital pound is ultimately a debate over whether the public should have access to publicly issued money, or whether we should only use privately issued money. Positive Money believes money is a public good, and we will be supporting the introduction of digital cash alongside physical cash in order to prevent the wholesale privatisation of the money and payments system. Take part in the consultation by emailing the Bank of England using our template here to demand a digital pound that works for people – not banks.
It might at first be difficult to convey to people what a digital pound is, and why we need one. A House of Lords Committee last year asserted that it is a ‘solution looking for a problem’. While recent banking crises may have since given an example of one of the big problems a digital pound is a solution to, as far as many people are concerned, they already have access to digital pounds. People may assume the pounds in their bank accounts are digital equivalents to the notes and coins in their wallet, but there are in fact fundamental differences. Crucially, while cash is risk-free publicly issued money, the money in your account is private money issued by the bank. Right now, the vast bulk of the money system on which our democracy and economy depend, is controlled by a handful of private banks. We believe the introduction of a digital pound is a rare and significant
— source positivemoney.org | Simon Youel
