Last week the Deputy Governor of the Bank of England, Sir Jon Cunliffe, gave a speech about money, including stablecoins and Central Bank Digital Currency (CBDC). He concluded that the form of money has always evolved and is something that can’t be held back. His biggest concern is the substitution of commercial bank money, whether by stablecoins or CBDC, which in turn could impact the availability of credit.
Referring to stablecoins, Cunliffe commented that “the supply of credit to the real economy through the banking system could become weaker or indeed disappear. That would be a change with profound economic consequences.”
Hence, he believes we should envision how money and payments might evolve in the absence of a CBDC. Reading between the lines, could money be dominated by Facebook or other big tech companies?
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