Bitcoin’s momentum as a payment method is dwindling due to its inefficiency, according to Bank of England (BOE) governor Andrew Bailey. In a recent meeting with the United Kingdom Parliament Treasury Committee, Bailey reiterated his belief that unbacked cryptocurrency lacks intrinsic value.
“My own sense is that it’s not taking off as what I might call a core financial service. […] For instance, using Bitcoin as a payments method is pretty inefficient,” Bailey stated. His sentiments were echoed by BOE deputy governor Sarah Breeden, who pointed out that the absence of a regulatory framework is impeding the progress of cryptocurrency in traditional finance. However, she noted that this situation is evolving.
Bailey also expressed concerns about stablecoin, describing it as a challenge for regulators and not stable enough. He referred to them as “opaque.” The discussion also briefly touched on Central bank digital currency (CBDC), or “Britcoin” as it was referred to in the meeting. Breeden mentioned that debates are ongoing regarding issues of privacy and programmability.
The December report, which was the main focus of the meeting, dedicated minimal space to digital currencies. The report indicated that authorities are contemplating policy options for stablecoin and CBDC. It stated, “This has included how to mitigate financial stability risks arising from the potential for a greater proportion of deposits to be withdrawn from a banking system in a stress.” The report primarily reviewed previous findings and recommendations, with the Financial Stability Board (FSB) set to review the implementation of its recommendations by the end of 2025.
Regulators in the UK have been focusing on stablecoin rules throughout 2023. It is anticipated that stablecoin regulations will be implemented in the U.K. by 2025.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Europe |
| Countries | 🇬🇧 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Andrew Bailey, Sarah Breeden |
| Companies | United Kingdom Parliament Treasury Committee, Bank of England |
| Currencies | BANK, YUSD Stablecoin, Bitcoin |
| Securities | None |
