20% Of Bank Deposits Could Move To Digital Pound, BoE Says

There is a future in cash too

Speaking at the Economic Affairs Committee in the Lords on Tuesday, Sir Jon Cunliffe, the BoE’s deputy governor for financial stability, said that the bank has made a “prudent assessment” of the 20% move. Cunliffe also said that banks could potentially lose a revenue stream from payments as a consequence of the move, adding that if banks are strong enough, they will be able to adjust to the change.

Cunliffe also said that there is a future in cash too, stating it would have an anchoring role in the financial stability of systems.

Since April this year, a potential digital pound has been on the horizon. In September, the BoE brought in representatives from big names such as Spotify, ASOS, and PayPal to consult on its CBDC Engagement and Technology forums.

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