The Bank of England will not protect commercial banks against the impact of digital currencies, according to deputy governor Sir Jon Cunliffe.
The U.K. Treasury said it was working on proposals for a new regulatory structure for stablecoins and other digital currencies.
The facility to support CBDCs is being developed as a “bolt-on” should the bank decide to roll out a digital currency in future.
The United Kingdom is working on plans that could lead to a digital currency, with the likelihood of adoption in a few years’ time.
Should central banks ultimately introduce digital currencies, they could be launched with the help of private companies.
Sarah John urged reserve banks to move more quickly towards developing and deploying crypto payment solutions..
Lawmakers in the United States have reached out to three major financial firms partnering with Facebook’s Libra project to urge them to reconsider their involvement.
Reuters learned Facebook had met with the Bank of England, the Treasury and regulatory officials before going public with its planned launch.
Mark Carney believes that the dollar will lose its place as the global reserve currency and adds that digital currency could take its place.