The Financial Thinking Center has offered the UK to adopt the digital pound to bolster London’s position as a global trade center after Brexit. London was formerly the center of gravity for the financial sector in Europe, and it lost much of its influence by the end of 2020 when the UK’s exit from the European Union came to an end.
The UK Treasury will now present proposals on how to make the City of London more attractive to international merchants and end operations from Amsterdam, which has become the new trading center for the European Union after Brexit.
Eurosceptic politicians and financial veterans in London have created CityUnited, a think-tank that offers ideas on how to drive growth in an independent UK. CityUnited Chairman Daniel Hudson told Reuters that the Bank of England’s assessment of the central bank’s digital currency was laudable, but that the process should be speeded up.
“The Bank of England is talking about central bank digital currencies, but it needs to be prioritized because this technology is the future and will provide other benefits such as real-time regulation to cut costs,” Hudson said.
Hudson said the progress China has made in launching the central bank’s commercial currencies should worry the UK’s financial authorities, who have warned that such technology could “steal the long term” to the UK. Hudson said:
“The central bank digital currency (CBDC) should be the foundation for a competitive city after Brexit, or else China will move towards us.”
China’s progress in creating central bank digital currencies has led to the release of biometric passports linked to RMB digital wallets, along with several similar pilot projects, as the country moves closer to issuing its own central bank digital currencies. Although it is not the first country to issue a central bank digital currency – thanks to the Bahamas – the global economic impact of China’s CBD could be much greater.
The digital yuan is expected to rule China’s cashless digital cities in the near future, and it will also be used in the Beijing 2022 Winter Olympics.