Bank of England governor Andrew Bailey expressed bearish comments on cryptocurrency. The governor revealed his bearish opinion on crypto during the cryptocurrency session at the World Economic Forum (WEF) Davos meeting, where he was one of the participating speakers. He said no crypto assets could work as a means of payment in the long term.
“Have we landed on what I 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.”
While speaking during the first crypto session on the Davos Agenda on the 25th of January, Bailey suggested that Bitcoin and altcoins do not satisfy the everyday economy due to their volatility.
Notably, Bitcoin plunged to $28,000 in the past week after reaching its all-time high of $42,000 on the 8th of January.
The Bank of England is also one of the central banks developing a central bank digital currency (CBDC). The governor added that the development of stablecoins and CBDCs is essential in today’s payments system. In 2020, several central banks made significant progress in the creation of a CBDC.
China conducted several pilot tests for its digital yuan and has further plans to continue with the trials. Beijing Mayor Chen Jining and Shanghai Mayor Gong Zheng have declared their support for the development of the digital yuan.
Image Credits: Pixabay