Bank of England Deputy Governor Jon Cunliffe says a Digital Pound (CBDC) could protect consumers, according to a new Bloomberg report. Specifically, Cunliffe said that the implementation of a digital pound could ensure consumer protection in the event of a “failure in the banking system,” the report stated.
Cunliffe state that consumers already live, “in an era of instantaneous bank runs,” where “depositors can move money quickly,” if solvency worries arise. The Bank of England Governor reiterated that the implementation of a CBDC could give consumers a “safe place,” to store their assets.
Bank of England Talks CBDC Value
The journey of various nations to implement a Central Bank Digital Currency has been a noted headline for the past two years. Moreover, some have seen a greater necessity for digital currency and how it can aid the economic state and progression of their specific country.
Now, the Bank of England has said that the Digital Pound (CBDC) could actually protect consumers. Specifically, Bank of England Deputy Governor Jon Cunliffe has said that the implementation of a digital pound could protect citizens from a banking system failure.
Bloomberg noted Cunliffe saying that consumers live “in an era of instantaneous bank runs,” where moving money is easy. Moreover, despite the fact that a CBDC could “‘intensify’ a run on a bank,” it would also present a “safe place,” for users to keep their assets.
“Actually, a CBDC has financial stability benefits because it provides another payment system in terms of resistance, but it also means that if we ever have to deal with failed banks again, there is another asset that people can go into,” Cunliffe stated today.
Additionally, Bloomberg noted that the Bank of England and the treasury are exploring a CBDC called the “Britcoin,” backed by the central bank and government. Conversely, the bank has placed a realistic timeline for the CBDC in 2030.