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Plans for UK “Digital Pound” Face Uncertainty Amid Growing Skepticism
Plans for the introduction of a UK “digital pound” are facing significant challenges as Bank of England officials grow increasingly sceptical about the project. The idea of a central bank digital currency (CBDC), often referred to as “Britcoin,” was initially slated for a formal decision in 2025, with an expected launch by 2030. However, concerns surrounding privacy, costs, and persistent conspiracy theories are raising fresh doubts about whether the digital pound will ever come to fruition.
A digital pound would theoretically offer consumers a secure, electronic form of money, with transactions managed through smartphone apps and underpinned by the safety of central bank backing. However, some critics, including certain politicians and conspiracy theorists, fear that a CBDC could enable the government to monitor and control citizens’ spending. Nigel Farage, leader of the Reform Party, has warned that a digital pound could give the state “total control over our lives.”
These concerns, combined with the practical challenges of creating a national digital currency, have put the project in jeopardy. According to sources familiar with the discussions, Bank of England officials remain divided on whether the benefits of a digital pound outweigh its potential risks. The final decision will ultimately rest with Bank governor Andrew Bailey and Chancellor Rachel Reeves.
The global context is also complicating the UK’s plans. In the United States, lawmakers recently passed an “anti-surveillance” bill in the House of Representatives, aiming to block the launch of a digital dollar unless Congress explicitly authorizes it. Meanwhile, the European Central Bank is expected to make a decision by the end of 2025 on whether to proceed with the development of a digital euro, despite resistance from Germany’s conservative Christian Democrats, who are concerned about user privacy.
This hesitation reflects broader caution over CBDCs, particularly those intended for everyday use by retail customers. While the UK and European authorities initially viewed CBDCs as a necessary response to private stablecoins, such as Facebook’s now-defunct Libra, enthusiasm has waned due to technical and political challenges.
Despite growing skepticism over retail-focused digital currencies, the push for a “wholesale” CBDC, intended for use among commercial banks and financial institutions, remains strong. Policymakers believe that a wholesale CBDC could streamline interbank transactions and reduce systemic risks without raising the same privacy concerns.
A Bank of England spokesperson confirmed that work on the digital pound is still “ongoing,” with no formal decision yet made on whether to proceed. The spokesperson emphasized that, should a digital pound be introduced, it would be accompanied by primary legislation to safeguard user privacy and control over their funds.
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Phillipson Defends VAT on Private School Fees and Supports Trump’s Ukraine Stance
Education Secretary Bridget Phillipson has reaffirmed the Government’s decision to apply VAT on private school fees, dismissing concerns that it will cause widespread closures. Speaking on Camilla Tominey Today on GB News, Phillipson emphasized that private schools must adapt to market forces, as closures are not a new phenomenon.
“Private schools, as businesses, will face choices as to how they manage their money. Parents also have choices as to how they spend theirs,” Phillipson said. She acknowledged that falling demand could lead to some closures, but attributed this to broader demographic trends, including lower birth rates, rather than VAT alone.
When asked about the potential impact on the sector, she noted that private schools have closed “in significant numbers” for many years, reinforcing that the policy is not unprecedented. Phillipson remained resolute, stating, “The policy stands, and I see no reason to move away from it.”
The VAT policy has drawn criticism from parents and school administrators who fear rising costs will force more closures. However, Phillipson stressed that the government is focused on fairness in education and that private institutions must navigate financial challenges like any other business.
Support for Trump’s Ukraine Approach
Shifting to foreign policy, Phillipson also addressed the ongoing war in Ukraine, expressing support for former US President Donald Trump’s calls for diplomatic negotiations to end the conflict. She urged the UK government to take a more active role in peace efforts.
“We believe the British government should step up and play a bigger role,” Phillipson said, commending Trump’s initiative to bring warring parties to the negotiating table. She highlighted the economic repercussions of the conflict, including rising energy costs and broader instability, as key reasons for seeking a swift resolution.
Phillipson also reaffirmed the government’s commitment to increasing defence spending, suggesting that the target of 2.5% of GDP could be reached by 2028, earlier than the previously proposed 2030 timeline.
As debates over both private education funding and the UK’s role in global diplomacy continue, Phillipson’s firm stance on these issues ensures they will remain focal points in the coming months.
News
Trump-Musk Email Demand Sparks Federal Workforce Backlash
Federal employees across the United States received unexpected emails on Saturday demanding they summarize their weekly work accomplishments. The directive, linked to tech billionaire Elon Musk and President Donald Trump’s efforts to reform the federal workforce, has triggered confusion and backlash, particularly within national security agencies.
The emails, sent from the Office of Personnel Management (OPM), carried the subject line, “What did you do last week?” and instructed employees to provide approximately five bullet points summarizing their recent tasks by Monday at 11:59 p.m. ET. The message warned against including classified information, links, or attachments and asked recipients to copy their managers.
However, the email did not explicitly state Musk’s earlier warning that “failure to respond will be taken as a resignation,” which he had posted on social media platform X. Hours before the emails were sent, Musk cited Trump’s “instructions” as the reason for the measure, following the president’s call for him to be “more aggressive.”
The unanticipated directive created immediate tension within the federal workforce. Agencies like the FBI and the Department of Defense urged employees not to respond until further notice. FBI Director Kash Patel informed bureau staff that their reviews would follow internal procedures, advising them to pause responses. The State Department similarly told employees that they were not required to reply. By contrast, Secret Service Director Sean Curran confirmed the email’s legitimacy, instructing personnel to comply and offering internal support resources for those feeling uncertain.
Union leaders swiftly condemned the demand. Everett Kelley, president of the American Federation of Government Employees, decried Musk’s approach as “cruel and disrespectful,” particularly toward veterans now serving as civil servants. The National Treasury Employees Union president, Doreen Greenwald, called the email “completely un-American” and vowed to challenge any unlawful terminations.
Federal employment law expert Michael Fallings stated that Musk’s online threat of considering nonresponses as resignations holds no legal authority. Fallings labeled the weekend request with a short deadline as “unreasonable and unnecessary,” emphasizing that involuntary terminations would be legally challengeable.
Despite the legal uncertainty, the email has created anxiety among many federal workers. Some expressed fear that failing to respond could jeopardize their jobs, while others saw the demand as an attempt to pressure employees into quitting. One worker described the request as “insulting” and “mind-blowing,” given the existing systems that already track their activities.
Trump and Musk’s collaboration to reshape the federal government includes reducing workforce size, removing certain civil service protections, and curtailing diversity initiatives. As agencies and employees navigate the fallout from this latest directive, unions are preparing legal responses, while the federal workforce faces ongoing uncertainty.
News
Amazon MGM Takes Creative Reins of James Bond Franchise Amid Casting Buzz
In a landmark shift for the James Bond franchise, Amazon MGM has partnered with long-time producers Michael G. Wilson and Barbara Broccoli to oversee the future of 007. While all three entities retain co-ownership of the Bond intellectual property, Amazon MGM will now lead creative decisions, marking a significant departure from its previously limited role.
The move follows Amazon’s $8.5 billion acquisition of MGM in 2021, which granted it partial ownership but little say in the franchise’s artistic direction. With Daniel Craig’s departure after 2021’s No Time to Die, speculation about the next James Bond has intensified. Jeff Bezos, Amazon’s founder and executive chairman, fueled the debate by asking his followers on social media platform X, “Who’d you pick as the next Bond?” The overwhelming response highlighted British actor Henry Cavill as a fan favorite. Known for roles in Superman, The Witcher, and Mission: Impossible – Fallout, Cavill previously auditioned for the role in 2006’s Casino Royale but lost to Daniel Craig. Director Martin Campbell praised Cavill’s audition but deemed him too young at the time. Now in his early forties, Cavill’s age could be a factor if long-term commitments are considered.
Daniel Craig acknowledged Wilson and Broccoli’s contributions, telling Variety, “My respect, admiration, and love for Barbara and Michael remain constant and undiminished.” With Wilson stepping back and Broccoli expected to reduce her involvement, Amazon MGM gains greater creative control, raising questions about the franchise’s future direction.
Fan speculation continues to swirl around Cavill, alongside other contenders like Taron Egerton, Tom Hardy, and Idris Elba. While Amazon MGM has yet to announce a timeline or reveal casting decisions, industry watchers anticipate a new era that may extend beyond traditional films, potentially including spin-offs, series, and streaming exclusives. As the studio reshapes Bond’s future, audiences worldwide eagerly await the next chapter in the iconic spy saga.
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