Could a bitcoin-style monetary system spell the end for Britain's banks?

Deputy BoE governor warns digital-style currencies could deny commercial banks crucial deposits and hinder their ability to lend money

The Bank of England (BoE) could become the hub of a bitcoin-style digital currency that sidelines high-street banks and cuts the costs of financial transactions, according to a senior executive at the UK central bank.

Ben Broadbent, BoE deputy governor, said a new system of holding cash in a banking version of the cloud, with encrypted keys to protect accounts, would likely prove a huge hit with customers, but warned that this could deny commercial banks vital deposits and potentially hamper their ability to lend money.