Nigel Green, CEO of independent financial advisor and asset manager deVere Group, reportedly said that the Bank of England's rumored digital currency Britcoin, which aims to overtake Bitcoin, will backfire.
Green's comments come after it was reported in April that the UK was considering implementing a central bank digital currency (CBDC) "aimed at tackling some of the challenges posed by...bitcoin." A month later, the Bank of England deputy governor said that the launch of Britcoin was "probable."
"Revealing just how worried they are about the ongoing epic rise and influence of Bitcoin, and other cryptocurrencies, the Bank of England is reportedly set to establish its own digital currency," Green said. "If the Bank and government officials believe Britcoin will supersede Bitcoin, they are mistaken. In fact, it will have the opposite effect."
Green cited three reasons why he doesn't see Britcoin posing a threat to Bitcoin as genuine digital cash.
First, he said that a central bank's mere action of venturing into creating digital money might help reduce people's skepticism toward the lack of paper cash. That, in turn, would help validate and propel bitcoin and its "inherent values of being digital, global, borderless, quicker, and more cost-effective than traditional money," Green explained.
Second and perhaps more importantly, Green noted the fundamental distinctions between Bitcoin and digital money controlled by a central bank. CBDC's, he said, "will still be controlled and manipulated by the Bank of England, meaning they can adjust supply and therefore its value." Something not possible with Bitcoin.
Lastly, Green also highlighted how there is a growing mistrust of the traditional banking system by the "younger, 'digital-native' generations." Consequently, the generation immersed in technology might favor the truly peer-to-peer digital cash system.
"Britcoin will be controlled by a handful of people from the Bank who have conversations and make decisions behind closed doors," Green added. "Bitcoin is controlled by no one and discussions are held out in the open and decisions are transparent and community-based. Which one do you think is the future of money?"