Parliamentary supremacy and Pass-through wallet: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
m (Comma.)
 
imported>Doug Williamson
(Create page - source - Bank of England - https://www.bankofengland.co.uk/paper/2023/the-digital-pound-consultation-paper)
 
Line 1: Line 1:
''Law''.
''Information technology - blockchain - Central Bank Digital Currencies (CBDCs).''


The historical legal principle in the UK that the UK Parliament was 'supreme' in its law-making powers.
In the context of Central Bank Digital Currencies (CBDCs), a pass-through wallet is a proposal for a tool to access CBDC held on the central bank's infrastructure, without holding any CBDC directly itself.


This principle was fundamentally affected when the UK joined the EU in 1973.


Parliamentary supremacy meant that:  
:<span style="color:#4B0082">'''''UK digital pound consultation'''''</span>


#The UK Parliament was able to make law for the UK as it saw fit either by repealing earlier statutes, over-ruling case law or by making new law.
:"The Bank [of England] would provide the digital pound and the central infrastructure, including the ‘core ledger’.  
#No UK Parliament could bind its successor.  Parliament could not make laws that a subsequent Parliament was prevented from altering or repealing.
#The courts in the UK had to apply the relevant statute law enacted by the UK Parliament.  


When the UK joined the EU, UK Parliamentary supremacy was fundamentally affected, and it is no longer true to say that only the UK Parliament has the power to make new law for the UK.
:Private sector companies – which could be banks or approved non-bank firms – would be able to integrate into the central digital pound infrastructure and provide the interface between the Bank and users.  


The effect of the UK becoming a member of the EU was to surrender the UK Parliament's supremacy on certain matters of European Union law which have direct effect on member states.
:They would do this by offering digital ‘pass-through’ wallets to end users.  


The position now is that: 


#The EU may pass legislation directly for the UK.
:The wallets could be integrated into their other services.
#The UK cannot, generally, make laws that conflict with EU law.  
 
#Overall, EU law enjoys supremacy over domestic national law and is applied in priority to domestic law.
:They are known as ‘pass-through’ wallets... because the user’s holdings of digital pounds are recorded anonymously on the Bank’s core ledger, in order to safeguard their privacy, and the wallet simply passes instructions from the user to the core ledger.
 
:End-users would interact with these wallets rather than directly with the Bank.
 
 
:Users would interact with digital pounds by using their wallet to see their balance and instruct payments and transfers of digital pounds.
 
:It is likely most people would access the wallet via their smartphone, but there would be alternative options, such as a smart card."
 
:''The digital pound: a new form of money for households and businesses? Consultation Paper - Bank of England - February 2023 - pp 11-12.''
 




== See also ==
== See also ==
* [[European Union ]]
* [[Bank]]
* [[Sovereignty]]
* [[Bank of England]]
* [[Blockchain]]
* [[Central Bank Digital Currency]]  (CBDC)
* [[Crypto wallet]]
* [[Cryptoassets]]
* [[Digital pound]]
* [[Electronic wallet]]
* [[Financial services]]
* [[Information technology]]
* [[Infrastructure]]
* [[Ledger]]
* [[Money]]
* [[Pass-through ]]
* [[Payment service provider]]
* [[Private sector]]
 
* [[Wallet]]
* [[Wallet provider]]
 
 
==Other resource==
[https://www.bankofengland.co.uk/paper/2023/the-digital-pound-consultation-paper The digital pound: a new form of money for households and businesses? Consultation Paper - Bank of England - February 2023]


[[Category:Compliance_and_audit]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]
[[Category:Technology]]

Revision as of 23:15, 28 June 2023

Information technology - blockchain - Central Bank Digital Currencies (CBDCs).

In the context of Central Bank Digital Currencies (CBDCs), a pass-through wallet is a proposal for a tool to access CBDC held on the central bank's infrastructure, without holding any CBDC directly itself.


UK digital pound consultation
"The Bank [of England] would provide the digital pound and the central infrastructure, including the ‘core ledger’.
Private sector companies – which could be banks or approved non-bank firms – would be able to integrate into the central digital pound infrastructure and provide the interface between the Bank and users.
They would do this by offering digital ‘pass-through’ wallets to end users.


The wallets could be integrated into their other services.
They are known as ‘pass-through’ wallets... because the user’s holdings of digital pounds are recorded anonymously on the Bank’s core ledger, in order to safeguard their privacy, and the wallet simply passes instructions from the user to the core ledger.
End-users would interact with these wallets rather than directly with the Bank.


Users would interact with digital pounds by using their wallet to see their balance and instruct payments and transfers of digital pounds.
It is likely most people would access the wallet via their smartphone, but there would be alternative options, such as a smart card."
The digital pound: a new form of money for households and businesses? Consultation Paper - Bank of England - February 2023 - pp 11-12.


See also


Other resource

The digital pound: a new form of money for households and businesses? Consultation Paper - Bank of England - February 2023

Retrieved from ‘https://wiki.treasurers.org/w/index.php?title=Parliamentary_supremacy&oldid=36693’