The Bank of England's speculated digital currency Britcoin, which wants to surpass Bitcoin, will backfire, according to Nigel Green, CEO of independent financial advisor and asset management deVere Group.
Green's remarks follow news that the UK was exploring introducing a central bank digital currency (CBDC) to "address some of the issues raised by...bitcoin" in April. Britcoin's launch was "likely" a month later, according to the deputy governor of the Bank of England.
However, according to various sources, Green claims that the UK central bank plan will not only fail, but would actually aid Bitcoin adoption and price appreciation.
"The Bank of England is apparently planning to launch its own digital currency," Green added, "revealing just how concerned they are about Bitcoin's and other cryptocurrencies' continuous epic rise and influence." "The Bank of England and government officials are incorrect if they expect Britcoin will eventually replace Bitcoin. In fact, it will backfire."
Green cites three reasons why he does not believe Britcoin is a credible digital currency threat to Bitcoin.
For starters, he claimed that a central bank's decision to experiment with digital money may help diminish public cynicism about the absence of paper money. As a result, bitcoin's "inherent values of being digital, global, borderless, speedier, and more cost-effective than traditional money" would be validated and propelled, according to Green.
Second, and probably more importantly, Green drew attention to the key differences between Bitcoin and central bank-controlled digital money. "The Bank of England will still manage and regulate CBDCs, meaning they may change supply and thus its value," he stated. With Bitcoin, this is not possible.
Finally, Green mentioned how "younger, 'digital-native' generations" are becoming increasingly skeptical of traditional banking. As a result, the technology-savvy youth may prefer a true peer-to-peer digital currency system.
"Bitcoin will be controlled by a small group of people from the Bank," Green added. "Bitcoin is decentralized, with no central authority, open conversations, and community-driven decisions. Which do you believe is the most likely to become the currency of the future?"
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