"Banks will have to adjust" to crypto, says Bank of England leader

Published on by Cointele | Published on

Jon Cunliffe, one of the leaders of England's central bank, said banks must adapt to the changes brought on by digital assets.

Blockchain and digital assets offer folks the ability to store their own assets, possibly threatening the solution banks offer.

Making sure banks remain relevant is not on England's central bank to-do list the Bank of England's deputy governor Jon Cunliffe.

"Our job is not to protect bank business models," Cunliffe said, as reported by a Friday Reuters brief.

"Our job is to ensure that if bank business models change, we manage the financial and macro-economic consequences of that."

Cunliffe posited it is not the responsibility of the Bank of England to ensure mainstream banking businesses remain relevant.

Central bank digital currencies, or CBDCs, pose a threat to the solutions commercial banks provide, cutting them out as middle men.

Crypto more broadly presents users with the option of self-custody, which challenges banks, although banks still function as fiat currency on-ramps.

China seemingly leads the CBDC race at present, already testing its digital yuan.

Cunliffe is implying that governments across the globe must prioritize conversations around these assets, due to the changes they may bring.