{"id":45325,"date":"2021-07-01T10:53:28","date_gmt":"2021-07-01T07:53:28","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=45325"},"modified":"2025-09-01T10:33:25","modified_gmt":"2025-09-01T07:33:25","slug":"bank-of-england-predicts-a-transformation-of-banking-models-after-cbdc-issuance","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/bank-of-england-predicts-a-transformation-of-banking-models-after-cbdc-issuance\/","title":{"rendered":"Bank of England predicts a transformation of banking models after CBDC issuance"},"content":{"rendered":"

The emergence of national digital currencies (CBDCs) will reduce the risk of financial crises by lowering banks’ leverage. This view was stated<\/a> by the Bank of England’s chief economist, Andrew Haldane.<\/p>\n

The expert predicted a fundamental shift in banking.<\/p>\n

\n

“The long-established, 800-year-old traditional model will change. A differentiation between safe, payments-based activity and risky, lending-related activity could occur.”<\/em> he explained.<\/p>\n<\/blockquote>\n

Haldane also suggested that the emergence of ‘Britcoin’ could help level risks across the sector as a whole.<\/p>\n

\n

“The new model will reduce the risk of financial crises. This is an advantage that must be taken into account.”<\/em> he explained.<\/p>\n<\/blockquote>\n

In April, the Bank of England and Her Majesty’s Treasury created a joint working group<\/a> to study the digital currency. At that time, the regulator posted<\/a> seven vacancies in the CBDC research group.<\/p>\n

In November 2020, Haldane allowed an improvement in financial stability<\/a> in the event of the appearance of a digital pound. The chief economist explained that this would be possible if the policy rate falls to negative values.<\/p>\n

Subscribe to ForkLog news on Facebook<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"

The emergence of national digital currencies (CBDCs) will reduce the risk of financial crises by lowering banks’ leverage. This view was voiced by the Bank of England’s chief economist, Andrew Haldane.<\/p>\n","protected":false},"author":1,"featured_media":45326,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[216,1229,1095],"class_list":["post-45325","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bank-of-england","tag-banks-and-fintech","tag-cbdc"],"aioseo_notices":[],"amp_enabled":true,"views":"36","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/45325","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=45325"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/45325\/revisions"}],"predecessor-version":[{"id":45327,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/45325\/revisions\/45327"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/45326"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=45325"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=45325"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=45325"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}