Future of all things fiscal
Given the rise in digital currencies and forms of exchange, are we already almost there in terms of having a form of exchange that is not yoked to sterling-denominated currency values?
Pirrie says: "You could even argue that global currencies are already digital - very few people carry cash anymore, it’s all tap and go.
"There is not enough notes and coins in circulation for everyone to withdraw their money from the financial system; it’s simply numbers on ledgers now."
But Haldane points back to the importance of the trust factor of central bank money, of fiat currency. "If you are in a currency where there is no trust in government and governmental agencies, then perhaps having an alternative is good.
"To be clear, us having a spectrum of private sector payments mediums - prepay cards, Oyster cards, debit or credit cards - these are good. Alternative payment rails are good.
"But at times of acute uncertainty, such as Covid, people value more than ever the certainty and security that comes from government-backed money."
He adds: "Even if private sector alternatives are used for everyday transactions, it will not get away from the central importance of anything you can trust, rain or shine. That is what central bank money is, and always has been."
