During a hypothetical conference hosted by the Brookings Institution, Andrew Bailey, Governor of the Bank of England (BoE), stressed that crypto-assets simply are not “suitable for the world of payment”.
In his made notes on the future of cryptocurrencies and stablecoins, Bailey classified Bitcoin (BTC) as an “unrelated money” asset.
Additionally, he was reluctant to believe that cryptocurrencies are a suitable investment opportunity because “their value can fluctuate a little, which is not surprising.”
Bailey made the comments about the pace of innovation in payments. Regarding stable coins, the governor commented that it could offer some “beneficial benefits”, such as reducing friction in the push, but cautioned:
“If stablecoins are to be used widely as a method of payment, they must have standards in effect today for other payment methods and forms of money transferred through them.”
The letter also stressed that some stablecoin proposals do not contain legal requirements for cryptocurrency holders, as the governor believes that stablecoins “should provide coin holders with a reliable condition with support and protection mechanisms to ensure they can be recovered at any time. Paper currency “.
The governor added that the starting point for discussing a global stable currency should be a single currency, but he did not necessarily rule out the idea of a multi-currency stable currency. Billy Sa:
“A global stable currency is a cross-border phenomenon. It can operate in one jurisdiction, be denominated in another currency and consumers use it in a third currency. The regulatory response must be in line with this. Global problems require a global response, especially for multi-currency coins designed for transactions. Across the border. ”
In June, the British L3COS blockchain company sent a proposal to the Bank of England for a blockchain-based operating system to operate a central bank-issued digital currency, or CBDC.
In addition, in March the Bank of England released a detailed discussion paper on central bank digital currencies that analyzed the rapidly changing payments landscape and the potential role of central bank digital currencies in support of the bank’s mission of managing monetary and financial stability.