Ideally the UK would not make this reform alone. Positive Money is part of an international movement for reform that hopes to reform the system in many countries worldwide. However, practically there is no problem with using this model of banking within one currency area (e.g. the UK, the US, or the whole of the Eurozone) with the existing foreign exchange systems. There is likely to be a reaction from the markets but any negative effect would be outweighed by the stability, safety and accountability of the reformed system.
Posted in: 3. The Positive Money proposals