UK inflation is a threat to financial stability – time to conceal that with tried and tested Eurozone techniques

As published on IREF Europe

Published on 6th July 2023

UK Consumer Price Inflation remained at 8.7% in May. The Bank of England has raised the cost of overnight money to 5% via increases in its Base Rate, and has caused the cost of medium-term money to rise by selling off the bonds that it bought since […]

‘Digital pound’ will not be ‘central bank money’ if there are deductions or a settlement delay

‘Digital pound’ consultation

Published on 28th June 2023

We have sent an addendum to our previous response to this consultation on the ‘digital pound’.

Its message is that the ‘digital pound’ will not be a form of ‘central bank money’ if its so-called Distribution Model replicates what happens in the Visa and Mastercard ecosystems on three points.

The consultation […]

Central banks should be wobbling in their drive towards Central Bank Digital Currencies

Published on 8th June 2023 with the underlying article published by IREF Europe on 7th June 2023

Introduction

Central banks have undertaken many investigations, pilots and proofs-of-concept into Central Bank Digital Currencies (CBDCs), proving little beyond the lack of a convincing case in their favour, but unearthing many risks, drawbacks and unanswered questions.

Recent material from Sweden, Japan, […]

Analysis of YouGov surveys commissioned by the Bank of England in connection with its ‘digital pound’ project.

Bank of England’s ‘consultation’ on the ‘digital pound’

Published on 15th May 2023

We previously issued a paper on the YouGov surveys that the Bank of England commissioned to support its work on the ‘digital pound’, the outcome of which work is out for consultation.

We have responded to both the Consultation Paper and the accompanying Technology Working […]

Technology Working Paper accompanying the Bank of England Consultation Paper on the ‘digital pound’

Bank of England ‘consultation’ on the digital pound

Published on 15th May 2023

We have analysed the Technology Working Paper which accompanies the Bank of England’s Consultation Paper on the ‘digital pound’, and responded to the survey.

You can download our responses to the survey questions here.

The UK’s ‘digital pound’, often referred to as ‘Britcoin’, will be a […]

Bank of England consultation on the ‘digital pound’

‘Consultation’ on the digital pound

Published on 15th May 2023

We have responded to this consultation, although it is a sham.

You can download our response here.

The points on which the Bank of England has chosen to consult are narrow, and avoid the most important questions about the ‘digital pound’, which can only be referred to tangentially […]

Risk-weighting – how to fake up resilience in a banking system

— blog published on 6th April 2023 and the underlying article by IREF Europe on 5th April 2023 —

Introduction

How resilient is the global banking system? Are banks’ capital buffers now much larger than they were going into the Global Financial Crisis of 2007/8, as authorities claim?

The buffers – called ‘Common Equity Tier 1’ (or CET1), […]

Bank Resolution is dead: authorities dare not use it – and instead risk destroying capital markets

— blog published on 1st April 2023 and the underlying article by IREF Europe on 29th March 2023 —

The template created after the Global Financial Crisis of 2007/8 to shield taxpayers from direct bailouts of failed banks has already folded – authorities dare not use it.

The template is to put failed banks into ‘resolution’, with […]