The BOE says growing interest in cryptoassets by institutional investors, banks and payments operators is a concern.
The fintech lead at U.K.’s central bank urged eco-conscious citizens not to “throw the blockchain baby out with the bitcoin bathwater.”
Christina Segal-Knowles played down concerns that the traditional banking model would be undermined.
The paper focuses on the effects of private stablecoins on the cost and availability of lending and the challenges for monetary policy.
Sir Jon Cunliffe expressed the concern that consumers may find stablecoins more attractive than bank offerings.
This is the first sign the Bank of England exploring the launch of a CBDC following the release of a discussion paper in March 2020.
Deputy Governor Jon Cunliffe says protecting bank business models is not BoE's responsibility.
ECB President Christine Lagarde says the impetus for a central bank digital currency could come from the need to facilitate cross-border finance.
Bank of England Governor Andrew Bailey wants coordinated global regulation around stablecoins as the payment method picks up steam.
CoinDesk has learned the Bank of England's new settlement system is being built so it can be forwards compatible with a digital currency.
The U.K.'s central bank is discussing the possibility of launching a digital currency, perhaps in several years.
The Bank of England will not budge on its design principles for any future CBDC.
Analysts from the U.K.'s central bank said private currencies could work alongside any future CBDC initiative if they offered real utility.
The outgoing governor of the Bank of England highlighted the potential risks to monetary governance if a central bank digital currency were to be launched in the U.K.
Governments need to research digital currencies so they can strike a balance with private issuers, said the BoE's chief cashier.