Whether a retail central bank digital currency (CBDC) is a threat to the existing model of bank balance sheet management depends on who owns the liability. The United Kingdom is right to prepare for the likelihood of a future of a digital pound, dubbed “Britcoin”, but the transfer of liabilities from commercial banks to the Bank of England would be a deep-seated challenge to balance-sheet driven market participants.
This content requires a Finadium subscription. Articles with an unlocked symbol can be accessed with free registration. Log in or create a free account by signing up here..
