Digital pound would boost post-Brexit City, says think tank
A digital pound should be at the heart of efforts to strengthen the City’s global attraction as a post-Brexit financial centre, think tank CityUnited Project said on Friday.
The finance ministry will set out proposals for making Britain’s capital market more attractive after Amsterdam toppled London to become Europe’s top share trading centre following Brexit.
CityUnited said there is a “swelling majority” in the City that believes it is better to focus on boosting the competitiveness of the financial sector rather than delaying change in the hope of getting EU access.
“A central bank digital currency (CBDC) should be a fundamental foundation for a competitive City after Brexit, otherwise China will steal a long march on us,” CityUnited Chairman Daniel Hodson said.
“The Bank of England is talking about a CBDC but it ought to be a greater priority as this form of technology is the future, and would bring other benefits like real-time regulation to cut costs.”
CityUnited, founded by Eurosceptic politicians and City veteran Hodson, has made 24 recommendations for reforming financial services.
Those ideas have been submitted to a government taskforce set up by Boris Johnson.
A digital pound would allow fractions of a currency to be spent and traced without costly overheads to help collect and distribute taxes in real time, CityUnited said.