Ex-Bank of England Economist Blasts Digital Pound As Costly, Useless Project
A former Bank of England economist says there is “no customer demand” for the digital pound, calling it a costly project with unclear benefits.
Ex-Bank of England economist appears to be highly critical of the digital pound initiative, saying it is a “costly, useless project” with “no customer demand.” Neil Record, writing in an op-ed for The Telegraph, argued that the push for a digital currency is more about protecting the central bank’s financial model than addressing any real public need.
Record says “none of the reasons quoted [by the Bank of England] seems to me to be compelling enough to set up a major financial project,” suggesting that the real motivation is the BoE’s concern about the fall in cash use, which impacts its income. He also notes that the “interest foregone by holders of notes and coins is the Bank of England’s principal source of income.”
“A world where cash becomes rarely used, and not widely held, would fundamentally damage the Bank of England’s economic model, and hence its existence in its current (independent) form.”
Neil Record
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Record also points out that many British consumers already have access to secure digital payment systems through banks and mobile platforms, while a government-backed digital currency, offering no interest and designed for everyday transactions, would struggle to compete with existing services.
“So a Central Bank offering that looks to the customer very like a current bank current account would struggle to be appealing. U.K. current accounts can, and often do today, offer interest on balances.”
Neil Record
Record also raised concerns about privacy issues as many consumers would likely distrust the BoE’s involvement in their financial affairs. Despite spending £24 million (over $30 million) so far, Record believes the digital pound lacks customer appeal and urges the Bank of England to focus on its core responsibilities, like inflation control.
The Bank of England and HM Treasury first announced plans to explore the creation of a digital pound in 2021. Since then, the project has advanced with consultations and discussions, though no final decision has been made yet.
Read more: U.K. Central Bank opens Digital Pound Labs for CBDC test
Will ADA Price Crash to $0 or Is a Rebound Incoming?
Cardano (ADA) has been through a rollercoaster ride in recent months, showing both massive gains and sharp declines. After reaching a peak above $1.20, ADA suffered a significant correction, dropping below $0.60 before experiencing a dramatic price surge. However, despite the recent spike, the price is facing strong resistance, leaving traders wondering—will ADA continue its recovery, or is another major drop on the horizon?
In this analysis, we will examine ADA’s key support and resistance levels, the current trend indicators, and whether the price could crash further or regain bullish momentum.
Cardano saw an explosive move upward after touching its $0.60 support level, which acted as a psychological bottom for many traders. The sharp increase in price was likely fueled by a short squeeze, where traders betting on further downside were forced to buy back their positions, accelerating the rally.
However, despite this bullish impulse, ADA quickly hit resistance near $1.20, a level that previously acted as a key rejection zone. The price has since dropped to $0.82, showing signs of increased selling pressure.
ADA's bounce from $0.60 suggests that this area is acting as a strong demand zone. Historically, when ADA has tested this region, buyers have stepped in to push the price higher. If $0.60 holds, ADA could consolidate before making another attempt at higher resistance levels.
On the flip side, if ADA fails to hold above $0.80, another retest of the $0.60-$0.65 zone is possible. If this level breaks, the next major support would be near $0.40, which could send bearish signals across the market.
The Relative Strength Index (RSI) is currently at 52, indicating that ADA is in a neutral zone. However, just a few days ago, the RSI was oversold, meaning that the recent price recovery was likely a result of buyers stepping in at lower levels. If the RSI moves above 60, it could signal continued bullish momentum, while a drop below 40 would indicate renewed weakness.
The Heikin Ashi candles also show some indecision in price movement. While recent candles have turned green, suggesting bullish attempts, the rejection at $1.20 means that bulls are not fully in control yet. For confirmation of a trend shift, ADA must print multiple strong bullish candles above $0.90-$1.00.
For ADA price to continue its upward movement, it needs to break and hold above $1.00-$1.20. This region has acted as a significant resistance level in the past, and overcoming it would allow for a potential move toward $1.50 in the coming weeks.
However, if ADA fails to break resistance and starts trending lower, the first critical support to watch is $0.80. A break below this level would likely lead to $0.60-$0.65, which is the last major support zone before a potential free fall toward $0.40.
While a complete crash to $0 is highly unlikely, ADA could still experience further declines if market conditions worsen. A major breakdown below $0.60 would raise concerns about deeper losses, and if broader crypto market sentiment turns bearish, ADA could revisit its 2023 lows of around $0.25-$0.30.
That being said, Cardano remains a solid blockchain project with strong development activity. If the crypto market recovers, ADA could still regain its previous highs over time.
ADA’s recent price action suggests a mixed outloo k, with strong support at $0.60 and strong resistance at $1.20. While short-term traders might look for breakouts above $0.90-$1.00 for bullish confirmation, long-term investors may consider accumulating near the $0.60-$0.70 zone if the price dips again.
For now, ADA remains at a critical decision point, and its next move will depend on whether it can break resistance or retest lower levels. Traders should watch the $0.80-$0.90 range closely, as a breakout or breakdown from this level will set the direction for the coming weeks.
SEC’s crypto task force to hold roundtables on crypto regulations and security status
The U.S. Securities and Exchange Commission’s new cryptocurrency task force will kick off a series of roundtables this month to clarify the “security status” of digital assets.
Dubbed the “Spring Sprint Toward Crypto Clarity,” the series will begin on March 21 with a discussion titled “How We Got Here and How We Get Out – Defining Security Status,” a March 3 SEC press release from the agency said.
The event will take place at the SEC’s Washington, D.C., headquarters and will be open to the public, though space for in-person attendance is limited.
The roundtables are part of a broader push by the SEC’s Crypto Task Force, launched in January by Acting Chair Mark Uyeda. Led by Commissioner Hester Peirce, the task force aims to bring some much-needed clarity to crypto regulations.
According to Peirce, these roundtables are all about “drawing on the expertise of the public” to help shape a regulatory framework that actually makes sense for crypto. She called these sessions an “important part” of the SEC’s engagement with the industry.
The SEC has fast-tracked efforts to clarify the security status of crypto assets just days after House Democrats introduced the MEME Act , a bill that blocks federal officials from launching, endorsing, or promoting digital assets, with criminal and civil penalties for violations.
On the same day, the SEC’s Division of Corporation Finance weighed in on whether meme coins fall under federal securities laws, ultimately concluding that they don’t meet the definition of security under the Howey test.
However, the agency stressed that its stance isn’t legally binding but rather a staff interpretation with “no legal force or effect.”
As previously reported by crypto.news, the SEC has also unveiled its list of members for its Crypto Task Force, which includes staff from Acting Chairman Mark Uyeda’s office, along with representatives from multiple divisions within the agency.
Michael Selig, a former partner at Willkie Farr & Gallagher who’s worked on crypto, NFTs, and stablecoins, is taking on the role of chief counsel. Peirce’s former policy counsel, Sumeera Younis, will run operations, and other key figures include Richard Gabbert, Taylor Asher, and Landon Zinda, who all bring different regulatory and policy expertise to the table.
Former CFTC chair and Willkie senior counsel Chris Giancarlo voiced his support for Selig’s new role in a March 3 X post, calling him a “protégé” and expressing excitement about the team’s direction.