The Bank of England said 20% of commercial banking deposits could shift to 'Britcoin' - and dismissed stablecoins as an alternative
markets.businessinsider.comThomson Reuters
The Bank of England has said commercial bank deposits could fall by a fifth if plans for a digital pound are implemented.
Central bankers, including governor Andrew Bailey, were addressing a House of Lords committee on central bank digital currencies, or CBDCs.
«Banks would need to adapt,» deputy governor for financial stability Jon Cunliffe said. «They would lose a revenue stream from payments.»
A CBDC is a digital currency issued by central banks directly to consumers and backed by fiat reserves. The BoE announced plans for a consultation on its own CBDC, nicknamed 'Britcoin', earlier this month.
The bank's representatives said that the introduction of a Britcoin CBDC would reduce commercial deposits due to faster payments and
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