Fabio Panetta’s article (“Central banks must develop for the era of digital currencies”, Market Insight, November 19) makes the case for Central Bank Digital Currencies (CBDC).
At the community level, we need to deploy digital cash in the financial care of vulnerable people in the UK. With all the accounting involved, it takes too long to get money from the Department of Employment and Pensions into the vulnerable person’s account.
In this context, we need to think of the DWP as the digital cash banker with the vulnerable person who has a digital cash account. Care services and approved providers such as care homes will have digital cash accounts that will allow them to be paid for the services rendered to the vulnerable person.
Accounting to and investigating by the Office of the Public Guardian would be quicker and easier.
The concept is less large than providing the entire population with digital cash, but it is more urgent, simpler to deploy and will provide a model for the CBDC ecosystem that Panetta envisages.
Stigter, Cashfac, London EC3, UK