LONDON—The Governor of the Bank of England and chair of the Financial Stability Board and Monetary Policy Committee is predicting that digital currencies could someday displace traditional banking systems.
“Looking ahead, it is possible that virtual currencies and fintech-based providers, particularly where they gain direct membership to central bank payment systems, could begin to displace traditional bank-based payment services and systems,” said Mark Carney during a speech at the Deutsche Bundesbank G20 conference, “Digitizing Finance: Financial Inclusion and Financial Literacy,” in Wiesbaden, Germany. Carney outlined the Bank's work and suggested new approaches to help grow the fintech sector, BraveNewCoin.com reported.
While noting fintech's potential in promoting financial inclusion, Carney said that “authorities have essential, supporting roles in reinforcing them and managing the associated risks to financial stability,” the website reported.
The BoE is already expanding Central Bank access to payments service providers that are not banks, which Carney first announced in June last year, BraveNewCoin.com reported.