Bank of England’s Jon Cunliffe Thinks Digital Pound Is Necessary

Deputy governor of the Bank of England (BoE), Jon Cunliffe, was asked whether the failure of crypto-giant FTX should impact the decision to issue a digital version of the British pound.

Cunliffe stated on Monday that he comprehends the worries, despite initially believing there was no connection between the collapse of crypto giant FTX and the central bank’s work on a central bank digital currency.

Cunliffe said at the Warwick Business School’s Gilmore Centre Policy Forum Conference on DeFi and Digital Currencies:

“My initial reaction to both points of view was that there really was no connection between FTX and our work on a digitally native, general purpose form of Bank of England money, for use by households and businesses in making payments.”

According to Cunliffe on Monday, the central bank will begin a consultation on stablecoins in the coming year that will examine the requirements for corporate structure, governance, accountability, and transparency necessary to meet the standards anticipated in other areas of the financial system.

The Financial Services and Markets bill is now being discussed in Parliament. The BoE plans to regulate major issuers of crypto assets with an emphasis on payments, such as stablecoins, within the framework.

A digital pound has also been a possibility for the BoE. Cunliffe added:

“Our work on a digitally native pound is driven by the trends we now see both specifically in payments, including the reducing role of cash, and more generally in the increasing digitalisation of daily life.”

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