BoE Believes Digital Currencies Threaten the Economy

Andrew Bailey, the head of the Central Bank of Great Britain, has reaffirmed his negative stance on Bitcoin and other cryptocurrencies during the week.

Citing that the cryptocurrency has no value and grows in price only by attracting new buyers, Bailey expressed that the use of BTC as payment poses a threat to the stability of the financial sector.

As an alternative, he suggests that it would be better for the authorities to develop their own “digital money” and make it an integral part of the financial infrastructure, so that the state has access to the transactions, and can reduce the risks of its criminal use.

This tracked “digital money” is known as CBDC, and while the UK has yet to make a decision on formally launching a digital pound, Bailey advocates for the creation of such a token that can be used in retail payments.

Additionally, the legislation on financial markets will be supplemented with clauses on the regulation of stablecoins.