Digital pound unlikely to be monetary policy tool – Cunliffe
Deputy governor says effect of paying interest unclear and could clash with other objectives
If the Bank of England launches a digital pound it is unlikely to be designed to support monetary transmission, Jon Cunliffe said today (February 28).
The deputy governor said the BoE planned not to pay interest on a UK central bank digital currency (CBDC). He told a parliamentary committee that the BoE saw the most likely need as being “digital cash”, an objective that could be undermined by paying interest.
An unremunerated CBDC would could close the door to one benefit that some academics
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