Digital currencies pose threat to economy, warns Bank of England

Research shows high-street banks could face a flood of withdrawals leading to financial instability

The rise of digital currencies could lead to a flood of withdrawals from high-street banks, risking financial stability and the wider economy, the Bank of England has warned.

Threadneedle Street said that stablecoins - a new form of digital asset usually pegged to the value of a traditional currency - would need to be regulated in the same way as payments handled by banks if they became widely available.