The Bank of England will not protect banks from digital currencies, says deputy governor

Sir John Cunliffe, deputy governor of the Bank of England, says it is not the job of central banks to protect banks from the potential fallout of a proliferation in digital currencies.

“Our job is not to protect bank business models,” said Cunliffe at an online seminar hosted by Columbia University.

Cunliffe said lenders would have to adjust to such changes on their own.

His comments come just a day after European Central Bank president Christine Lagarde said she has a “hunch” Europe will proceed with the development of a digital euro, although it is not racing to do so.

At today’s seminar, Cunliffe said politicians must accelerate their effort to explore the implications of CBDCs.

“They need to go up the political agenda quite fast before the political side discovers there are developments in the private sector that actually don’t fit with policy,” he said.