Cunliffe spells out key questions to answer before launching CBDC
If central banks are to issue digital currency, they must think hard about the design, BoE deputy says
Central bank digital currency (CBDC) could imply a radical reshaping of the banking sector, so central banks must answer “fundamental questions” before launching one, Jon Cunliffe said on February 28.
The Bank of England deputy governor highlighted the possible downsides of CBDC, including the possibility of draining liquidity from the banking system. He warned that if CBDC was “too successful”, it could become a vulnerability for the financial sector, a “single point of failure”.
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