"They are not operations on actual pounds (i.e. on the central bank currency)."
They are - because the deposits are insured 100% up to £85,000 by the deposit protection scheme.
You can show mathematically that an insured system and a in-specie system are exactly equivalent.
If I have more that £85,000 then I put it in National Savings for absolute security.
That covers over 99% of "digital cash" situations in the UK.
Neither of those things have anything to do with the central bank, because central bank money in the UK is also a derivative. The operational assets of the Bank of England are a claim on the National Loans Fund with recourse to the Consolidated Fund and ultimately parliamentary authority. Which is where Sterling truly originates.
They are - because the deposits are insured 100% up to £85,000 by the deposit protection scheme.
You can show mathematically that an insured system and a in-specie system are exactly equivalent.
If I have more that £85,000 then I put it in National Savings for absolute security.
That covers over 99% of "digital cash" situations in the UK.
Neither of those things have anything to do with the central bank, because central bank money in the UK is also a derivative. The operational assets of the Bank of England are a claim on the National Loans Fund with recourse to the Consolidated Fund and ultimately parliamentary authority. Which is where Sterling truly originates.