The head of the Bank of England, Andrew Bailey, believes that no cryptocurrency will last. Talking about the design, governance and regulation of “digital currencies” the head of the UK central bank said, “I don’t think cryptocurrencies are as they were originally formulated.”
Bank of England Head Andrew Bailey Doubts Existing Cryptocurrencies Will Survive
Bank of England (BOE) head Andrew Bailey spoke about cryptocurrencies at the World Economic Forum’s online Davos Agenda on Monday. Speaking at the panel titled “Resetting Digital Currencies”, he said that digital innovation in payments is “here to stay“.
However, for cryptocurrencies, the head of the UK central bank said:
Have we come to what I call the design, governance and regulation of what I call digital currency? No, I don’t think we’re there yet, to be honest. I don’t think cryptocurrencies are what they were originally formulated to be.
The Bank of England governor added: “The whole question of people having assurances that their payments will be made at a stable rate … ultimately ties back into what we call fiat currency, which has a relationship with the state.”
Bailey notes that this can be regulated in a number of ways in which innovation comes in, naming stablecoins and central bank digital currencies (CBDCs) as examples. Like other central banks, the UK central bank has considered issuing its own central bank digital currency.
Bailey also pointed out that the appropriate level of privacy for digital currencies is likely to be hotly debated. He was quoted as saying, “This is a huge issue that will emerge in the landscape, the whole question of privacy standards for transactions made in all forms of digital currency, and where the public interest lies.”
Godfrey Bloom, a British politician who served as a member of the European Parliament from 2004 to 2014, commented on Bailey’s crypto statement. He tweeted:
Bitcoin strikes terror into the hearts of central bankers. Every time you buy bitcoin or gold coins, they know it’s another nail in their corrupt coffin.