Bank of England Governor Andrew Bailey thinks that because of their architecture and function, it is doubtful that the new generation of crypto assets can survive in the long term.

In the U.K. The governor of the central bank assumes that current cryptocurrencies will fail due to their robust privacy features over the longer term. The BoE governor believes that the architecture and structure needed to ensure long-term regulatory survival are missing in the current generation of crypto assets. “Bailey responded to a question on whether cryptocurrencies are here to stay with skepticism for the long term during the World Economic Forum’s Jan. 25 online panel “Resetting Digital Currencies.

For regulators, transactional privacy offered by crypto assets is still a concern.

The BoE Governor suggested that the levels of transactional privacy offered by crypto assets are a source of concern among regulators, stating that it is in the public interest to create a privacy standard for transactions. He said that the whole issue of a privacy standard for transactions made in any type of digital currency is a major one that is coming to the landscape where the public interest lies. The whole topic of people getting the guarantee that their payments will be made in something with stable value essentially links back to what we call fiat currency, which has a connection to the state, Bailey also said on stablecoins.

CBDCs continue to be researched by central banks.

Not everybody is talking about cryptocurrencies at the BoE. BoE chief economist and a sitting member of the Monetary Policy Committee, Andy Haldane, previously claimed that crypto-assets could be a key component of a ‘modern monetary order.’ Together with the European Central Bank, the Reserve Bank of India, and many others, the Bank of England is among many central banks exploring the creation of its own fiat-backed digital currency. For some time now, the People’s Bank of China has been piloting its digital yuan and is now very close to releasing it to the public at large.

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