BoE's Cunliffe Says Regulator Won't Protect Banks Against Cryptos
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13 November
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Bank of England (BoE) Deputy Governor Jon Cunliffe says the watchdog will not protect financial institutions from the impact of future digital currencies, Reuters has learned.

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According to Cunliffe, banks "will have to adjust" to the dramatic reduce of clients who will not want to hold money in traditional bank accounts.

"Our job is not to protect bank business models. Banks will have to adjust. Our job is to ensure that if bank business models change, we manage the financial and macro-economic consequences of that," Cunliffe added.

BoE's Deputy Governor also calls for creating a political agenda around central bank digital currencies (CBDC) before private sector takes over in this area.

"They [policy world] need to go up the political agenda quite fast before the political side discovers there are developments in the private sector that actually do not fit with policy," Cunliffe said.

As iHodl reported in September, Andrew Bailey, Governor of the BoE, rejected bitcoin as a means of payment while recognizing the potential of stablecoins. During a conference held at the Brookings Institute, Bailey stressed out that digital assets "are unsuited to the world of payments."

Bank of England Considering Issuing CBDC, Governor Says

In his speech, Bailey shared his opinion on bitcoin, stating that the crypto is an asset that has "no connection at all to money." In addition, Bailey has gone further by saying that digital assets are not a good asset to invest in as "their value can fluctuate quite, widely, unsurprisingly."

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