Ex-UK PM Liz Truss Supports Bitcoin, Warns Against CBDCs

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In a conversation with Peter McCormack, a well-known Bitcoin advocate and podcast host whose show initially zeroed in on Bitcoin but now delves into UK politics as well, ex-UK Prime Minister Liz Truss voiced her approval for Bitcoin while harboring serious doubts about digital currencies issued by central banks (CBDCs). During this candid discussion, Truss, who held the position of UK’s Prime Minister and Leader of the Conservative Party for a short period, touched upon monetary policy, the independence of the Bank of England, and the potential repercussions of CBDCs.

Pro-Bitcoin, Against CBDCs

In the course of our discussion, I articulated my perspective on digital assets, highlighting their potential to decentralize power traditionally held by central banks. To put it simply, I am an advocate for Bitcoin and cryptocurrencies in general. I believe they are beneficial as they help shift control away from central banks towards individual users. However, I express profound concerns about the concept of a central bank digital currency. In my view, such currencies could significantly augment the power of the state, which I find quite alarming.

She voiced worries about central banks, especially the Bank of England, having too much power without proper accountability. Regarding quantitative easing (QE) and rising prices, Truss pointed out that there has been significant inflation, QE went on for a prolonged period, causing asset price surges which ultimately led to inflation. She mentioned that it was said beforehand that this inflation would be temporary but it wasn’t, despite the lessons from past experiences having been learned.

As per Truss’s perspective, these policy choices, coupled with a lack of responsibility, have led to a considerable financial burden being shouldered by many British families.

McCormack questioned Truss about the necessity of a central bank. In response, she emphasized that should the UK opt to keep a central bank, its administration must be accountable. She stated, “That’s an intriguing query. You see, if we do have one, it needs to be answerable. As it stands now, we have an unaccountable central bank – which means we’re stuck in the worst situation possible.

Truss criticized the shift of authority from the Treasury to the Bank of England, which was initiated by former Chancellor Gordon Brown when he granted the bank operational autonomy. She argued that insufficient supervision resulted in policy errors with lasting impact. Essentially, she stated that what Gordon Brown did to make it independent has led to prolonged quantitative easing, which has been supporting overly lenient government spending policies by printing money.

I believe it gives the government too much control, and we know that unchecked power from the state is not beneficial… It also seems like a component of the surveillance State.

Her comments mirrored wider apprehensions in the cryptocurrency sector, as skeptics caution that Central Bank Digital Currencies (CBDCs) might allow governments to track and regulate transactions with greater precision compared to traditional cash or decentralized digital currencies.

During her time in government, Truss admitted that she was often discouraged from exploring monetary policy issues: “At the Treasury, when I asked about monetary policy, I was told it wasn’t our job, it was the Bank of England’s… In the 2022 leadership campaign, I advocated for revisiting the Bank of England’s mandate.

It’s essential for Truss, as Chancellor of the Exchequer, to advocate for a wider discussion about the role and responsibility of the Bank of England in order to strengthen monetary strategies. She believes that it is important to address this issue, even if there are objections from the bank or accusations of undermining its autonomy.

As a researcher, I find it concerning when an organization claims its actions are independent without providing further explanation. This raises questions about potential issues within their operations. Therefore, it’s essential to scrutinize aspects such as the international monetary system, the independence of central banks, and the role of cryptocurrencies to ensure a comprehensive understanding and maintain transparency.

At press time, the Bitcoin price was at $94,079.

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2025-01-10 17:14