BoE Governor Questions Stability of Cryptocurrencies

The Governor of the Bank of England (BoE), Andrew Bailey, said on Monday that cryptocurrencies are providing a modern way of payment, but not as currencies, Reuters reported.

Bailey’s remarks came during an online event organized by the World Economic Forum’s Davos summit on Monday.

“Have we landed on what I would call the design, governance and arrangements for what I might call a lasting digital currency? No, I don’t think we’re there yet.”

“Honestly. I don’t think cryptocurrencies as originally formulated are it.”

“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.”

“We’re right still to debate stablecoin, we’re right to debate central bank digital currency. Those issues, I think, are very much up for grabs,” Bailey was quoted by CNBC as saying.

Meanwhile, Bailey questioned the level of privacy provided by the digital currencies.

“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.”