Bank of England Vice President Jon Cunliffe spoke about the relationship between digital currencies and commercial banks. Cunliffe explained that the central bank has no duty to protect commercial banks from the influence of digital money.
According to Reuters, a new statement came from the Vice President of the Bank of England regarding digital monetary policies. A statement was made by Jon Cunliffe these days when discussing how the central bank or private company-backed digital currencies will affect the traditional banking understanding.
They don’t have a duty to protect banks
Officials at central banks such as the Fed and the European Central Bank think that thanks to digital money, monetary policies can be implemented faster and more effectively. Thanks to digital currencies, central banks can make sudden policy changes and deliver these policies directly to the end user, the citizen.
How this will affect the banking sector is a matter of curiosity. Bank of England President Andrew Bailey addressed this issue at a forum he attended yesterday and declared that it is not clear how digital currencies will affect the economy and monetary policies. In his statements today, Vice President of the Central Bank Jon Cunliffe evaluated the relationship between digital currencies and commercial banks.
Jon Cunliffe stressed that the central bank does not have a mission to protect commercial banks from the effects of digital money, according to David Milliken. Cunliffe said banks themselves are responsible for their business model.
Fed, Europe, UK collaborate for digital currency
Bank of England Governor Andrew Bailey attended a joint forum yesterday with the heads of the Fed and the European Central Bank. Heads of three central banks made statements about digital currencies during the forum.
Fed Chairman Jerome Powell said at the forum that they “firmly evaluated” the idea of the digital dollar and that they are working with the UK and European central banks during this process. European Central Bank President Christine Lagarde made a statement in support of this and stated that her personal opinion is that these studies will continue.