Yes and no. In the long run, to a first approximation, the issuing own currency bit is irrelevant to public finances. If you want low and stable inflation, you can't finance more than a fraction of a per cent of GDP through printing money.
https://twitter.com/johnvanreenen/status/1372895931121729537
Yes the BoE is currently buying those gilts, but if the inflation target requires it, and it probably will, most, probably all of the tranche since the pandemic will be reversed.
Although @andyverity is right that formal bankruptcy can be avoided by printing ever more currency, in practice, it probably would not choose this to rule it out, because the inflation that would result would be worse than default.
In fact economically speaking, deliberately causing prices to rise through money printing, so as to reduce the real value of the gilts, leaves the bond holder in the same position as a severe haircut or default.
So if this is the case why is the borrowing nonetheless fine? I explain here in my @prospect_uk piece: prospectmagazine.co.uk/economics-and-…
The primary reason it's all fine is belief in the continuity of the state's ability and preparedness to seek and obtain consent to levy taxes to service the debt and to create policies that grow the economy so that the debt service burden as a share of national income is low.
There was a thread version of this which I wrote in response to an @Aiannucci
https://twitter.com/t0nyyates/status/1317393590683914241?lang=en
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