In the wake of Brexit and in an effort to strengthen London’s status as a global trades centre, a financial think tank has suggested that Britain should adopt digital pound. It is pertinent to add that on the premise of the European exit from European Union, London which was seen as the centre-point of European financial sector lost much of its influence at the end of 2020.
Also, after the Brexit,, Amsterdam became the new EU trading hub, so it has been posited that it behooves on the United Kingdom’s Finance Ministry to make London attractive to traders by bringing back their lost glories.
The consideration of the Central bank digital currency is commendable, but the process should be hastened, according to Daniel Hodson, City United Chairman. Also, London finance veterans and Euro-skeptic politicians have formed CityUnited, a think-tank that is proposing ideas on how to foster growth in an independent Britain
“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,” said Hodson.
The progress made by China in launching a CBDC should worry British finance authorities, said Hodson, who warned that such technology could “steal a long march” on the United Kingdom. Hodson said:
“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.”