Bank of England – Digital currency

Bank of England – Digital currency

People, governments and businesses need money to ensure we can live in a democratic, fair & decent society powered by a stable, sustainable & thriving economy.  John McDonnell’s ‘new economics’ conferences have inspired many to learn more about our MONEY SYSTEM.

The money we use today is in the form of CASH (notes & coins) and ELECTRONIC MONEY/DIGITAL CURRENCY (bank deposits).

The Cash which we can touch, is publicly created under the direction of the Government (via the Bank of England).  Only 3% of our entire money supply is in this form.

Over 97% of all the money in the economy is created by PRIVATE BANKS.  Banks can create money through the accounting they use when they make loans.

Unstable financial markets, inflated house prices and massive inequality are some of the consequence of the current financial system.  A big part of the solution is fundamentally redesigning the money system.

In “Digital Cash: Why central banks should start issuing digital currency”POSITIVE MONEY set out the case for the Bank of England to start offering bank accounts to individuals and small businesses as well as issuing an electronic currency.  This would be a significant step towards a more stable and secure banking system.

BANK OF ENGLAND issued a paper which discusses the consequences of the central bank making a digital form of cash available to the general public, so that they are no longer forced to use bank deposits to make electronic payments.

The benefits of adopting such an approach would be

  • A more stable financial system
  • More competition in banking
  • 100% risk free accounts

Related posts

Leave a Reply

Your email address will not be published.