The Digital Pound: A Tyrant’s Dream Come True.
You’ve heard all the promises about the Digital Pound. That it’s safe. That your privacy is guaranteed. But you have to ask yourself one brutal question: what happens when the people making those promises are gone? Because in the hands of an authoritarian regime, the system they are building today becomes the perfect weapon for controlling you tomorrow. This isn’t an academic exercise; it’s a warning. The infrastructure of a digital cage is being assembled right now, and what matters isn’t the current design, but what it will become in the wrong hands.
This isn’t just an academic exercise. History is littered with democracies that faltered. To build this infrastructure without considering the worst-case scenario is not just naive; it is reckless. In the event of an authoritarian takeover, the digital pound, linked to a Digital ID, would not be a tool of convenience. It would be the most perfect instrument of state control ever conceived.
The first and most immediate change would be the weaponisation of surveillance. All the current safeguards—GDPR, promises of data privacy, the separation between the Bank and private wallet providers—would be swept away overnight. An authoritarian state would rewrite the laws, bypass regulations, or simply coerce private companies to hand over the data. The system is already designed for traceability; a new regime would just have to point it in the right direction. Every transaction, every donation, every purchase would become an open book to the state, revealing your networks, your beliefs, and your loyalties. Financial privacy would cease to exist.
This leads directly to the next implication: conditional access to your own life. Today, they promise it’s a choice. Under an authoritarian regime, that choice would vanish. The digital pound would become mandatory, and cash, the last bastion of anonymity, would be aggressively phased out. We’ve seen how quickly existing financial systems can be turned against citizens. During the 2016 coup attempt in Turkey, the government froze the bank accounts of thousands of suspected dissidents. A digital pound would make this process frictionless and absolute.
Your access to money, and therefore your ability to buy food, pay rent, or travel, would be tied directly to your compliance. A centralised Digital ID would become the linchpin of a social credit system, where your right to participate in the economy is granted or denied based on your loyalty to the regime. Step out of line, and you could be switched off. Not arrested, not charged, just silently and efficiently excluded.
With this power, our fundamental civil liberties would be dismantled. The right to protest, to assemble, and to speak freely would be neutered. An authoritarian state could reprogramme the digital pound in an instant. It could block donations to opposition groups, restrict travel to protest locations, or even limit what you are allowed to purchase. The “silent denial of a transaction” would become the state’s most effective tool for suppressing dissent, creating a chilling effect that would silence opposition far more effectively than any police force.
And in a final, devastating step, such a regime could use the digital pound to manipulate the economy for its own ends. It could issue “helicopter money” directly into citizens’ wallets to shore up loyalty, but with strings attached—programmable funds that can only be spent on state-approved goods. It could even revalue the currency overnight, forcing everyone into the new system and wiping out the savings of those who resist.
The democratic checks and balances we rely on today are fragile. They can be eroded or dismantled. The infrastructure we build, however, is permanent. To create a centralised system that fuses identity and money is to build a cage. We may be promised that the door will remain unlocked, but in the hands of an authoritarian ruler, that door would be slammed shut and bolted. The Digital Pound would become the ultimate enforcer, turning every citizen into a subject, their freedom contingent on the flick of a switch.
Quentin Budworth 