Bank Of England Restricting Bitcoin Access Despite UK to develop Central Bank Digital Currency

As the Bank of England and the Treasury of the United Kingdom discuss plans for a central bank digital currency (CBDC), also known as a “digital pound,” top executives at several banks across the country have decided to restrict its customers from purchasing Bitcoin. The Bank-Treasury CBDC Taskforce, created in April 2021 to review the consultation paper, is now taking this plan into consideration.

Exploring the potential of a digital pound, the Bank of England is currently conducting a thorough examination to assess its benefits. It would be used by both households and businesses alike as a means to transact daily payments. Alongside this, Governor Andrew Bailey and Chancellor Jeremy Hunt have released an outline for their plans to avoid any banking crises in the future. To ensure a comprehensive approach, stakeholders from across Britain are being consulted on the proposed model announced by the Bank of England and UK Treasury.

In an effort to ensure the stability of the traditional banking system, the Bank of England and two unnamed officials have announced a restriction on transfers when it comes to the new digital pounds. As reported by The Telegraph, this limitation involves limiting Britons to transferring no more than a few thousand digital pounds into their accounts. Evidently, they are concerned about large outflows from conventional banks due to the effortless nature of digital currency. A consultation paper indicated that this cap might possibly be set at £10,000.

In a move that has stirred up many debates, UK bank CEOs have blocked their customers' access to cryptocurrencies. This decision came as no surprise when they reported before the Treasury Select Committee to detail their concerns of fraud and volatility. Alison Rose, CEO of NatWest Group, informed the committee that the bank had elected a "pretty hard line" towards cryptocurrency due to its instability and risk of being defrauded via social media and technology platforms. However, the executives fully supported the new regulations proposed by the UK Treasury aimed at tackling this issue.

In recent times, there have been many moves by the government of the United Kingdom to control and limit private citizens' use of their money. Major businesses have also played a part in this endeavor, working side-by-side with the government in what appears to be a move towards greater financial submission. This effort has extended into the world of cryptocurrencies and bitcoin, with further steps taken to establish a Central Bank Digital Currency (CBDC) system that would ostensibly stifle progress within the cryptocurrency industry.