{"id":110160,"date":"2021-01-26T04:07:41","date_gmt":"2021-01-26T04:07:41","guid":{"rendered":"https:\/\/precoinnews.com\/?p=110160"},"modified":"2021-01-26T04:07:41","modified_gmt":"2021-01-26T04:07:41","slug":"boe-governor-cryptocurrencies-of-today-are-destined-to-fail-long-term","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/crypto\/boe-governor-cryptocurrencies-of-today-are-destined-to-fail-long-term\/","title":{"rendered":"BoE Governor: cryptocurrencies of today are destined to fail long term"},"content":{"rendered":"
Bank of England Governor Andrew Bailey thinks it is unlikely that the current generation of crypto assets lack the design and structure needed to ensure long term regulatory survival.<\/p>\n
Speaking during the World Economic Forum\u2019s Jan. 25 online panel \u201cResetting Digital Currencies\u201d Bailey responded to a question on whether cryptocurrencies are here to stay for the long term with skepticism:<\/p>\n
\u201cAre crypto-currencies here to stay? Digital innovation in payments \u2013 yes. Have we landed on what I would call the design, governance and arrangements for a lasting digital currency? No, I don’t think we’re there yet […] I don\u2019t think cryptocurrencies as originally formulated are it.<\/p><\/blockquote>\n
Bailey indicated the levels of transactional privacy afforded by crypto assets is a source of concern among regulators, asserting the establishment \u201ca privacy standard for transactions\u201d is in the public interest. <\/p>\n
\u201cThe whole question of a privacy standard for transactions made in any form of digital currency, and where the public interest lies […] this is a big one that is coming on to the landscape,\u201d he said.<\/p>\n
Bailey also extended his concerns regarding privacy to stablecoins, stating:<\/p>\n
\u201cThe whole question of people having assurance that their payments will be made in something with stable value [\u2026] ultimately links back to what we call fiat currency, which has a link to the state.\u201d<\/p><\/blockquote>\n
However, not everyone at the BoE is alarmed by cryptocurrencies. In November, Andy Haldane, BoE chief economist and a sitting member of the Monetary Policy Committee, stated that crypto assets may be a key component of a \u2018new monetary order\u2019. <\/p>\n
The Bank of England is among many central banks researching the development of its own fiat-backed digital currency, alongside the European Central Bank and more recently the Reserve Bank of India<\/p>\n