Banks will need to find the way to function normally in a world with crypto, as stated by Jon Cunliffe, one of the leaders of England’s central bank. 

Specifically, Cunliffe reportedly remarked that with blockchain and crypto assets providing individuals with the safekeeping feature for their own assets, it could become a competition to the services banks have been facilitating. 

However, the task of ensuring banks still have their fair share of the market is reportedly not a responsibility of England’s central bank, per deputy governor Jon Cunliffe.

“Our job is not to protect bank business models. Banks will have to adjust. Our job is to ensure that if bank business models change, we manage the financial and macroeconomic consequences of that.” 

In Cunliffe’s idea, it is not included in the Bank of England’s task list to guarantee the relevancy level of mainstream banking businesses. CBDCs are reportedly a rival to the services commercial banking entities provide, eliminating the need for middlemen.

Crypto, covering a wider scope, equipping users with the selection of self-custody, posing as a challenge to banks, despite banks are still operational as fiat currency on-ramps.

“They need to go up the political agenda quite fast before the political side discovers there are developments in the private sector that actually don’t fit with policy,” Cunliffe remarked regarding the leading status China has at the moment in the CBDC race, having conducted testing for its digital yuan.