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Digital Currency Could Protect Banks from Bankruptcy, says BOE Deputy Governor

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It is reported that the Bank of England\’s deputy governor, Joseph Kalif, said that digital currency may play a protective role in preventing bank bankruptcy. I…

Digital Currency Could Protect Banks from Bankruptcy, says BOE Deputy Governor

It is reported that the Bank of England’s deputy governor, Joseph Kalif, said that digital currency may play a protective role in preventing bank bankruptcy. In terms of digital currency, I don’t think we are behind other developed economies. There is no disagreement between the Bank of England and the UK Treasury on the issue of digital currency. The postponement of consultations on this issue was due to the “interruption” of relevant policies last fall, namely the tragic failure of the “mini budget”. The digital pound may bring great benefits to the economy and society.

Bank of England Vice President: Digital currency may play a protective role in preventing bank bankruptcy

Interpretation of the news:


Joseph Kalif, the Deputy Governor of the Bank of England, has reported that digital currency may act as a safeguard against bank bankruptcy. He also mentioned that there is no disagreement between the Bank of England and the UK Treasury concerning digital currency. Furthermore, he believes that the postponement of consultations on this issue occurred due to the interruption of relevant policies last fall because of the tragic failure of the mini-budget.

Mr. Kalif believes that the UK is not lagging behind other developed economies when it comes to digital currency. Instead, he views digital currency as a tool that can bring about great economic and social benefits to society. The preservation of the banking sector, which is critical to the stability of the economy, is one of the critical advantages of digital currency.

The COVID-19 pandemic has highlighted the need for a more efficient, secure, and reliable payment system. Furthermore, central banks around the world are considering issuing their digital currencies, as it would give them greater control over the monetary system.

In addition to the potential advantages, there are some drawbacks to digital currency. For example, experts are worried about the possibility of using it to finance illegal activities. Moreover, its implementation could pose challenges to privacy and security, as well as make financial exclusion more likely.

In conclusion, a meaningful and useful discussion on digital currency is essential for policymakers and key stakeholders in the financial sector. The benefits and drawbacks of digital currency must be carefully evaluated, and its application must be well thought out. At present, the UK is studying the potential implications of issuing its digital currency, suggesting that it is taking this matter seriously.

In summary, digital currency could help UK banks avoid bankruptcy, and it has the potential to provide great economic and social benefits to society. Policymakers must carefully weigh the pros and cons of adopting digital currency while ensuring that its benefits can help bolster the UK’s financial system.

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