The Governor of the Bank of England believes that existing digital currencies will fail in the long term due to their strong privacy features.
According to the Queen Telegraph, Bank of England Governor Andrew Bailey believes that the current generation of crypto assets is unlikely to lack the design and structure needed to ensure long-term regulatory survival .
In his speech at the World Economic Forum on Monday, Pelly answered a question about whether digital currencies are there to stay in the long term in a questionable way: Are digital currencies here to stay ? Digital Innovation in Payments - Yes. But have we come to what I would call the design, governance and arrangements for a permanent digital currency? No, I don't think we have arrived yet [...] I don't think that digital currencies as they were originally formulated are.
Bailey pointed out that the levels of transaction privacy provided by cryptocurrency assets are a source of concern among regulators, stressing that creating a privacy standard for transactions is in the public interest. >
He said: The whole question is related to the privacy standard for transactions that take place in any form of digital currency, and where the public interest lies [...] It appears on the scene.
Billy also expressed his concerns about the privacy of stablecoins, saying: The whole question of people who have a guarantee that their payments will be made with something of fixed value [...] At the end of what we call paper currency, which has a link with the state.
However, not everyone at the Bank of England is worried about cryptocurrencies. In November, Andy Haldane, chief economist at the Bank of England and current member of the Monetary Policy Committee, stated that crypto assets may be a key component of the new monetary system.
The Bank of England is among several central banks looking to develop their fiat-backed digital currency, alongside the European Central Bank and most recently the Reserve Bank of India.
