Digital £

[Ladybug14]

If a digital £ is created and is limited to £20k per person, what happens to the remainder of our savings (if we have more than £20k)?

Does that simply remain in S & S or savings accounts, as now?

Why would they do this? What would it achieve?

A £20k limit wouldn't work for people saving house deposits for a start as they might need more than that and investments are risky so unsuitable for money you need in the short term.

@BarbaraofSeville I agree. I am completely bamboozled by the idea.

There is so much news/speculation/gossip about finances at the moment. Talk of the crash of 1929 - 1932 happening again and advice about taking money away from normal savings methods/banks/bonds.

Confuses the heck out of me

I've never heard of this, do you have a link?

I find it hard to believe that mainstream institutions are entertaining what you are suggesting as a serious idea.

I wouldn't be surprised about a crash, after all, there's a lot of business, personal and government debt out there that was propped up by cheap interest rates so there's the fall out from that, but creating new money and limiting amounts anyone can keep, nah.

Where did you get the information?

www.reuters.com/markets/currencies/consumers-face-20000-pound-limit-digital-pound-bank-england-says-2023-02-07/

Digital £ will not replace the regular £ it will be an additional option.

Digital £ is also not meant for savings but for current accounts for day to day living.

Think of it like a digital credit card that money can be put on and spent.

I think Apple might well introduce something like this as an extension to ApplePay before the BOE pull their finger out on it.

Yeah this.

In essence they are somewhat shafting banks as they will lose a lot of deposits. Swathes of the population only have a current account with a low balance under this threshold. With a digital pound they potentially never need a regular bank account again - unless it will not facilitate direct debits to pay your bills.

Oh. I see. I think 🤣

So.... it's a possibility to replace debit cards?