Statement to the treasury select committee. Please sign.

It’s hard to believe, but right now all the electronic money we use is created by commercial banks when they make loans. This means that the big banks get handed a £23 billion subsidy every year. The banks think they are ‘too big to fail’,’ and the government ends up on the hook if, through their risky speculative activities, they go bust. This system isn’t working for any of us, but now we have the chance to change it.

This month, a powerful group of MPs, the Treasury Select Committee, launched an inquiry into whether the Bank of England should issue a digital version of cash. If the Bank of England issue digital cash it would mean safe money for all of us. Subsidies to banks would be removed, and the payment system would be protected.

banks digital cash

I’ve added my name to the statement below, which call on the Treasury Select Committee to recommend the introduction of Digital Cash. The inquiry closes on 13th April, when this statement will be delivered.

With the ongoing decline of physical cash, the UK is more and more reliant on a handful of big banks. This means that the economy is at risk from banks’ lending activities, and banks have to be propped up by taxpayer money.

We believe that it is time to take advantage of new technology to reshape money and payments in the public interest.

We therefore support proposals for the Bank of England to issue a digital version of cash. This would take the form of a risk-free, publicly-issued electronic money.

The Bank of England already issues digital currency in the form of deposits held by commercial banks in accounts at the Bank of England. It can provide Digital Cash simply by making these accounts available to non-bank companies and individuals.

Doing so would make our payments system more resilient, reduce our reliance on a small number of unaccountable institutions, and help stimulate competition and innovation in payments services.

We call on the Treasury Select Committee to recognise the clear benefits of Digital Cash and the public support for it represented by this petition, and to recommend its introduction.

The more of us who sign this statement, the more support these MPs will have to push for it. So please will you add your name too? It takes just a couple of clicks:

SIGN THE STATEMENT: http://act.positivemoney.org/dc-forward-email

The statement has been put together by Positive Money. They’re a small campaign and research organisation, calling for a fairer money and banking system. One that would help us bring down inequality, protect the environment and have a more stable, secure economy.

Positive Money is going to submit the statement, along with a lot more evidence, to the Inquiry before it closes. But it’ll be much more powerful if it includes the voices of thousands of us. So please will you add your name now? It takes less than 30 seconds:

SIGN THE STATEMENT: http://act.positivemoney.org/dc-forward-email

Thanks!