Bank of England director denies Bitcoin as a means of payment

During a virtual conference conducted by the Brookings Institute, Andrew Bailey, Bank of England’s (BoE) director mentioned that crypto assets are just “unsuited to the world of payments.”

In his reports on the future of cryptocurrencies and stablecoins, Bailey named Bitcoin (BTC) to be an asset with “no connection at all to money.”

He is not convinced that crypto assets might serve as a proper investment opportunity, because “their value can fluctuate quite, widely, unsurprisingly.”

Bailey commented on his point of view during his speed about innovations in the sphere of payments. Though he is quite positive about the stablecoins, saying that they might bring some “useful benefits,” such as reducing delays in payments:

“If stablecoins are to be widely used as a means of payment, they must have equivalent standards to those that are in place today for other forms of payment types and the forms of money transferred through them.”

In his speech he has also mentioned that some stablecoins proposals don’t suppose a legal claim for crypto holders. Moreover he added that each country should have their stablecoin and for the moment there is no necessity in multi-currency stablecoin.

“A global stablecoin is a cross-border phenomenon. It can be operated in one jurisdiction, denominated in another’s currency, and used by consumers in a third. The regulatory response must match this. […] Global issues require a global response, particularly for multi-currency stablecoins intended for cross-border transactions.”

In June, United Kingdom-based blockchain company L3COS offered to the Bank of England, or BoE, to launch a blockchain-based operating system to power a central bank-issued digital currency, or CBDC.

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