BoE Governor: Existing Cryptocurrencies Are Destined to Fail Long Term

BoE Governor Andrew Bailey has said that existing cryptocurrencies will fail over the longer term due to their robust privacy features.

January 26, 2021 | AtoZ Markets – During a speech at the World Economic Forum (WEF), Bank of England (BoE) Governor Andrew Bailey expressed the opinion that a truly “strong” digital currency has not yet been created.

Andrew Bailey: Existing cryptocurrencies cannot be called full-fledged currencies

In a panel discussion, Bailey stressed that recent developments in the payment infrastructure will play a role in increasing the speed of payments and lowering their cost. However, important problems have not yet been resolved, especially in the area of ​​regulation, and existing cryptocurrencies cannot be called full-fledged currencies.

“Can we say we have governance mechanisms and designs for a truly sustainable digital currency? No, I don’t think we have developed something like that, ”said the Governor of the Bank of England.

According to Bailey, cryptocurrencies were not created to make payments and transfers with a fixed value. The industry is likely to move towards fiat-pegged stablecoins so that payments are made in a fixed amount. And for this, the leaders of the central banks of various countries must discuss the advantages of stablecoins and digital currencies.

“There are many more challenges that stablecoins can help us with,” Bailey said.

The Governor of the Bank of England has repeatedly spoken out in favor of stable cryptocurrencies. Last October, he said that bitcoin has no intrinsic value, but stablecoins pegged to fiat currencies do.

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