In the cryptocurrency economy, the supply of credit through the banking system could disappear, warned Bank of England Deputy Governor Sir Jon Cunliffe. That would be a change with “profound economic consequences,” he added, emphasizing the risks from Facebook’s Libra project and global stablecoins.

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‘Profound Economic Consequences’

Bank of England Deputy Governor Sir Jon Cunliffe warned on Friday that bank lending could dry up in the cryptocurrency economy. In a speech given at the London School of Economics, he explained that there is “a new wave of technological development that enables the transactional use, not of central or commercial bank money, but rather a new form of asset, so-called ‘crypto-assets.’”

Bank of England Deputy Governor Sir Jon Cunliffe believes that the cryptocurrency economy could dry up bank lending.

Cunliffe, who was previously a British envoy to the European Union, proceeded to talk about stablecoins….

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