More crypto skepticism is being seen this week with the governor of the Bank of England throwing salt in the face of all crypto enthusiasts. The head of England’s top bank, Andrew Bailey, believes that crypto currencies are not here to last and will definitely be gone in a matter of time.
Digital payment systems over cryptocurrencies
Talking at the World Economic Forum’s online Davos Agenda on Monday, he asserted that he didn’t believe cryptocurrencies as originally formulated are it. Bailey was giving his contribution on a panel entitled “Resetting Digital Currencies,” where he added that digital innovations in payments would continue. The governor appeared very pro fin-tech in terms of payment advancements but held his reservations when it came to cryptocurrencies.
His reservations about cryptocurrency arise from the fact that he doesn’t think we have arrived at a place of design, governance, and arrangement for a lasting cryptocurrency. He added; “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.”
Stablecoins and CBDCs potential remedies
The bank of England governor, however, believes that the situation can be remedied through innovation. Bailey sees stablecoins and Central Bank Digital Currencies (CBDC) as the likely solutions. Bailey’s assertions could explain why the bank of England like many other banks around the world has been pushing for its own central bank digital currency.
Bailey also brought up a privacy issue that could plague digital currencies going forward. He said that the appropriate level of privacy for cryptos would soon be a hot button topic. He was quoted as saying; “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.”
The governor’s comments come just hours after former Goldman Sachs CEO asserted that regulators should be “hyperventilating” at the success of Bitcoin. Though more institutions are showing interest in BTC than ever before, it appears we still have a reserved class that mostly consists of veterans from the traditional finance space. Whether time will see some of them come around or not, we can only wait and see.
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