2 November 2024
Bank Of England Governor Believes Cryptocurrencies Are Unlikely To Last
Andrew Bailey, the governor of Bank Of England (BOE) share his opinions regarding cryptocurrency at the World Economic Forum’s online Davos Agenda Monday. In his speech via panel entitled “Resetting Digital Currencies,” he stated that digital innovation in payments was “here to stay.”
However, he didn’t have the same reaction over cryptocurrencies as he said, “Have we landed on what I would call the design, governance, and arrangements for what I might call a lasting digital currency? No, I don’t think we’re there yet, honestly. I don’t think cryptocurrencies as originally formulated are it.”
The Bank of England governor further said, “The whole question of people having assurance that their payments will be made in something with stable value … ultimately links back to what we call fiat currency, which has a link to the state.”
According to him, it can be organized in many ways which are where innovation comes in, naming stablecoins and central bank digital currencies (CBDCs) as examples. Similar to other banks, the British central bank has been looking into issuing its own central bank digital currency.
He also highlighted that the appropriate level of privacy for digital currencies was likely to be hotly debated. He mentioned, “this is a big one that is coming on to the landscape, the whole question of a privacy standard for transactions made in any form of digital currency, and where the public interest lies.”
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