Last week we wrote up news of the advent of Britcoin, the UK’s own central bank digital currency (CBDC). Today our friends at Finextra bring word of the latest CBDC developments in the European Union.
The European Central Bank has hired ING’s global director of payments, Evelien Witlox, to head up its digital euro programme.
Following experimental work earlier in the year, in July the ECB greenlighted a two-year investigation into the prospects for launching a central bank digital currency.
Witlox will lead this work as digital euro project programme manager when she joins the central bank in January as part of the senior management team of the Directorate General Market Infrastructure and Payments.
The investigation phase is designed to address key issues regarding design and distribution of a digital euro that meets the needs of Europeans while at the same time helping to prevent illicit activities and hurting financial stability and monetary policy.
Historical Performance And IFISA Process Guide
That figure is the result of over £24 million of loans facilitated on the site, as we bring individuals looking for a good return on capital together with carefully vetted small companies seeking funds for growth. Bear in mind that lenders’ capital is at risk. Read warnings on site before committing capital.
All loans on site are eligible to be held in a Money&Co. Innovative Finance Individual Savings Account (IFISA), up to the annual ISA limit of £20,000. Such loans offer lenders tax-free income. Our offering is an Innovative Finance ISA (IFISA) that can hold the peer-to-peer (P2P) business loans that Money&Co. facilitates. For the purposes of this article, the terms ISA and IFISA are interchangeable.
So here’s our guide to the process:
The ISA allowance for 2020/21 is unchanged from last tax year at £20,000, allowing a married couple to put £40,000 into a tax-free environment. Over three years, an investment of this scale in two Money&Co. Innovative Finance ISAs would generate £8,400 of income completely free of tax. We’re assuming a 7 per cent return, net of charges and free of tax here.
Once you have made your initial commitment, you might then consider diversifying – buying a spread of loans. To do this, you can go into the “loans for sale” market. All loans bought in this market also qualify for IFISA tax benefits.
Risk: Security, Access, Yield
Do consider not just the return, but the security and the ease of access to your investment. We write regularly about these three key factors. Here’s one of several earlier articles on security, access and yield.