In an discussion with Peter McCormack, the long-time Bitcoin proponent and presenter of a podcast that initially concentrated solely on Bitcoin before branching out to encompass UK politics, former UK Prime Minister Liz Truss articulated her backing for Bitcoin and voiced serious concerns regarding central bank digital currencies (CBDCs). Truss, who had a brief tenure as the UK’s Prime Minister and Leader of the Conservative Party, spoke openly about fiscal policy, the independence of the Bank of England, and the prospective ramifications of CBDCs.
Pro-Bitcoin, Opposed to CBDCs
During the discussion, Truss clarified her stance on digital currencies, accentuating their ability to “strip power away from central banks.” She remarked: “I am an advocate for Bitcoin and cryptocurrency. I believe they are beneficial. I think they assist in taking power away from central banks… I’m extremely, extremely concerned about anything resembling a central bank digital currency.”
She articulated worries over the unchecked authority held by central banks, especially the Bank of England, which she contended remains “unaccountable.” Referencing quantitative easing (QE) and inflationary pressures, Truss pointed out: “We’ve experienced significant levels of inflation, we had QE that persisted for far too long, asset price surges… and the outcome was inflation. We were pre-warned that it was going to be temporary, but it wasn’t, even though the lessons had already been learned.”
According to Truss, these policy choices—coupled with the absence of accountability—have led to considerable financial pressure on British families.
McCormack questioned Truss on whether a central bank is genuinely essential. She emphasized that if the UK opts to retain a central bank, it must reform its governance: “That’s a thought-provoking question. Well, if we do have one, it ought to be answerable. Right now, we’re experiencing the worst of all scenarios—we have an unaccountable central bank.”
Truss critiqued the shift of authority from the Treasury to the Bank of England stemming from former Chancellor Gordon Brown’s decision to enable the bank’s operational independence. She implied that insufficient oversight resulted in policy errors with lasting effects. “What Gordon Brown executed in granting it independence… you can observe the results. We’ve had QE for excessively long… bolstering exceedingly lax government spending strategies through money printing.”
Truss clearly indicated she perceives potential risks with an official central bank digital currency. Underlining her main concern, she stated: “I believe they grant the state enormous amounts of power and what we understand is that excessive state power is detrimental… it also appears to be part of the surveillance State.”
Her comments resonated with wider apprehensions within the cryptocurrency community, where detractors caution that a CBDC could empower governments to scrutinize and direct individual transactions more closely than cash or decentralized cryptocurrencies.
While reminiscing about her time in government, Truss disclosed that probing into monetary policy matters was discouraged: “When I was at the Treasury and attempted to inquire about monetary policy, I was informed it wasn’t our responsibility, it was the purview of the Bank of England… during the leadership contest in 2022 where I highlighted all the policies I intended to pursue, I stated we should reevaluate the Bank of England’s mandate.”
She asserted that a more extensive discussion on the mandate and accountability of the Bank of England is essential to ensuring stronger monetary policies. According to Truss, the Chancellor of the Exchequer should not hesitate to engage in such discussions, despite opposition from the Bank or accusations of endangering its independence.
“Whenever an institution justifies its existence by claiming it’s independent, that in my perspective is a warning signal indicating a problem. Therefore, all of this should be addressed: the international monetary system, the independence of central banks, and the role of cryptocurrencies,” Truss commented.
As of the time of publication, the Bitcoin price stood at $94,079.
Featured image from YouTube / Peter McCormack, chart from TradingView.com