BoE Gov: Public Interest Lies in Privacy, But Crypto’s Are Not A ‘Lasting Digital Currency’
Bank of England Governor Andrew Bailey has no love lost for Bitcoin and believes the days of cryptocurrencies are numbered. Speaking on a panel about digital currencies at the Davos-based World Economic Forum on Monday, Bailey said,
“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.”
Cryptocurrencies are here to stay only as digital innovation in payments, he added.
What will be the real thing, according to him, is a currency with stable value. After hitting an all-time high of $42,000 earlier this month, Bitcoin is currently keeping above $31k. Bailey said,
“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.”
Central banks around the world, including BoE, are looking at their own digital currency. Bailey further said that suitable levels of privacy were likely to be debated and was potentially underrated as a challenge.
“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.”