UK might need a digital pound after FTX collapse, BoE Deputy Governor says

Bank of England Deputy Governor John Cunliffe says there may be a need for a digital British pound. Cunliffe said when discussing whether the collapse of crypto exchange giant FTX would affect his BoE’s decision to issue the digital pound.

Speaking on DeFi and digital currencies at Warwick Business School’s Gilmore Center Policy Forum conference, Cunliffe said:

Over the past few days, there have been several comments, both to the effect that the collapse of FTX indicates that digital native pounds need to be issued, and that FTX does not need to do so. I received the. So.”

UK Crypto Policy Framework

In addition to endorsing the digital pound, the lieutenant governor also showed support for the UK’s efforts to issue appropriate regulations within the crypto space. According to him, his FTX in particular “represents these new technologies and their potential to revolutionize financial services and forms of money.”

Cunliffe said the UK crypto industry needs a relevant policy framework to not only protect investors and customers, but also to provide financial stability and enable innovation in the field. said. Previously, he proposed extending existing financial regulations to cover cryptocurrencies.

At the moment, Parliament is discussing a Financial Services and Markets Bill that could classify cryptocurrencies as financial instruments and give the UK regulator and the BoE more control over the sector. , intended to give the BoE the power to regulate large payment issuers focused on crypto-assets like stablecoins.

canriff said Central banks will begin consultations on stablecoins next year, considering the corporate structure, governance, accountability and transparency requirements necessary to meet the standards expected in the rest of the financial systemFTX. The example in emphasizes how important these aspects are. It is.”