The Deputy Governor of the Bank of England has argued with the possible surge of non-bank actors issuing currency. Public money in digital form could serve as an important newscaster of confidence and clarity in money as a social convention.
The Deputy Governor of the Bank of England, Jon Cunliffe has argued that
In a speech at the OMFIF Digital Money Institute in London, Cunliffe reflects on the past, present, and future trends in the international uses of private money issued by commercial banks, noting that
About 70% of respondents to a recent Bank of England survey indicated that they were using less cash than before the pandemic, typically turning to options such as contactless payments and internet transactions.
Cunliffe predicted that
With the emergence of new phenomena such as stablecoins, smart contracts, programmable money, and micropayment channels, Cunfliffe said
These technology-driven changes, also pose the question as to whether central banks should risk allowing publicly available state money to decline further, or even disappear altogether.