The Governor of the Bank of England, Andrew Bailey while speaking at the World Economic Forum Panel; “Resetting Digital Currencies” has stated that no existing cryptocurrency has the structure to last as a payment option over a long period of term. The virtual World Economic Forum was said to have been hosted by Davos.
While on the platform, Bailey was asked a question; “Have we landed on what I would call the design, governance and arrangements for what I might call a lasting digital currency?
The Governor replied by saying he doesn’t feel cryptocurrencies are there yet; “No, I don’t think we’re there yet, honestly. I don’t think cryptocurrencies as originally formulated are it.” He went on to say
“The whole question of people having assurance that their payments will be made in something with stable value … ultimately links bank to what we call fiat currency, which has a link to the state.”
According to a report, the Bank of England is said to be working on the possibility of issuing a Central Bank Digital Currency (CBDC) just like the Central Bank of Europe. The digital currency will enable users to make real-time transactions just like they can make with the traditional bank issued notes. Users do not need a bank to make these transactions with the Central Bank issued digital currency.
Bailey also stated that it was important to continue discussions about digital currencies, their potentials and the level of transaction privacy.
The Governor has previously served as the Chief Officer of the UK’s regulatory body, FCA (Financial Conduct Authority) and then as the deputy Governor before he became the Governor of England’s Central Bank since last year, March 2020.
Are cryptos/digital assets actually unlikely to last? What do you think? Share your comments below