Bank of England Governor Andrew Bailey says there will be an element of “tough love” in regulating cryptocurrencies. “What we cannot have is a world where innovation gets a free pass ignoring the public interest. The chances of such an approach not ending well are very high,” the governor said.
Bank of England’s Bailey Wants to Regulate Crypto With ‘Tough Love’
Bank of England Governor Andrew Bailey spoke about cryptocurrency regulation on Monday at the annual conference of financial trading body The City UK.
He was quoted as saying: “We must work both domestically and with international partners, ensuring that we understand and respond to issues of public interest that arise here.” He said it would allow the Bank of England to protect financial stability while allowing innovation “in a world where the public interest is well defined and protected”.
Emphasizing, “What we cannot have is a world where innovation gets a free pass ignoring the public interest. The chances of such an approach not going well are very high,” the Governor elaborated:
Such a process will inevitably have elements of tough love and some frustrated ambitions, but I believe it will lead to a stronger form of innovation.
Governor Bailey has long been a critic of cryptocurrencies. last month he said Cryptocurrencies Are “Dangerous” repeated That they “have no intrinsic value” and that “buy them only when you are prepared to lose all your money.”
He also talked about stablecoins, noting that they “have the ability to settle in terms of their importance to the financial system and its stability.” Bailey elaborated, “This will be a key requirement to ensure, as long as the stablecoin is not operating as a bank, subsidiary asset to the stablecoin at all times covering outstanding coin issuance.”
Furthermore, the Governor of the Bank of England cautioned against using cryptocurrencies for payments, saying:
They fluctuate quite a bit in price, which is why they are not a good medium to pay for.
Addressing the Bank of England’s work on a central bank digital currency (CBDC), he said the bank and the UK Treasury are weighing the potential to create one. “We’re going to engage with users, the technology sector, to understand the potential of these things,” he said.
What do you think about the Bank of England governor’s comments on bitcoin and cryptocurrency regulation? Let us know in the comments section below.
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