Regular visitors to this News site will be aware of our long-standing interest in central bank digital currencies (CBDCs). CBDCs are not cryptos, merely a digital value exchange system, with a central bank as its curator. Several governments are rushing to get their own CBDCs out, with Britain to the fore.
UK Treasury minister John Glenn has outlined a pathway to the creation of a UK central bank digital currency, with the option of a live launch in the “second half of the decade”.
The Bank of England is currently consulting with a broad range of stakeholders from across the economy and society, including consumer groups, think tanks, businesses, academics, financial institutions and technology experts, in its exploration of a business case for a CBDC.
As part of those explorations, HM Treasury and the Bank of England will publish a consultation in 2022 setting out their assessment and the merits of further work to develop an operational and technology model for a UK CBDC.
In a written Parliamentary statement, Glenn says that if there is a decision to proceed following the consultation, a development phase would include the publication, by the Bank of England, of a technical specification to explain the proposed conceptual architectureC.
Following this, a decision would be taken on whether to move into a subsequent build and testing phase.
The lender is seeking to fund claims for financial mis-selling. The term of the loan is 15 months.
Below are some details from the borrower’s pitch – as ever, we’ve done due diligence but cannot warrant or guarantee the truth of the representations. For full detail, register or log in here.
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.