- Bank of England Paper Assess Stablecoins and CBDC Impact.
- The paper looks at how digital currencies impact financial systems.
- Also, The Bank of England prosed a regulatory system to make stablecoins ‘safer’
The Bank of England has released a paper that assesses the impact of digital currencies. The paper focuses on the effect of private and public digital currencies on the financial system.
Specifically, the paper looks at how digital currencies could affect the cost and availability of lending and could influence monetary policy. The Bank of England emphasized that public confidence is vital to monetary and financial stability. As such, for digital currencies to become widely used they must offer the same level of confidence existing forms of money provide.
Also, the paper notes that digital currencies could add needed benefits to the existing financial system. For instance, digital currencies could contribute to faster, cheape...
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