{"id":34081,"date":"2023-07-11T07:32:54","date_gmt":"2023-07-11T11:32:54","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/crypto-and-stablecoins-are-not-money-says-bank-of-england-governor-in-favor-of-enhanced-digital-money\/"},"modified":"2023-07-11T07:32:56","modified_gmt":"2023-07-11T11:32:56","slug":"crypto-and-stablecoins-are-not-money-says-bank-of-england-governor-in-favor-of-enhanced-digital-money","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=34081","title":{"rendered":"Crypto and Stablecoins Are Not Money, Says Bank of England Governor in Favor of &#8216;Enhanced Digital Money&#8217;"},"content":{"rendered":"<div>\n<p style=\"text-align:justify;\">Andrew Bailey, Governor of the Bank of England (BoE), has reiterated his stance against cryptocurrencies, during his recent speech at the Mansion House in London.<\/p>\n<p style=\"text-align:justify;\">Bailey, who has previously voiced his concerns about the speculative nature of digital currencies, said Monday that Bitcoins have \u201cno intrinsic value and are highly volatile.\u201d He also noted that cryptos like Bitcoin (BTC) are \u201cbest treated as extremely speculative investments.\u201d<\/p>\n<p style=\"text-align:justify;\">Furthermore, Bailey said that stablecoins such as Tether (USDT) and USD Coin (USDC) \u201care not robust.\u201d<\/p>\n<blockquote>\n<p style=\"text-align:justify;\">\u201c[Stablecoins] do not meet the standards we expect of safe money in the financial system. In particular, both fail the basic tests of singleness and settlement finality. They are not money.\u201d<\/p>\n<\/blockquote>\n<p style=\"text-align:justify;\">However, Bailey believes that the prospect of \u201cenhanced forms of digital money\u201d looks more promising.<\/p>\n<p style=\"text-align:justify;\">\u201cEnhanced digital is most conveniently defined as a unit of money to which there is the capability to attach a lot more executable actions, for instance, contingent actions in so-called smart contracts, which could be simple or quite complex,\u201d he explained.<\/p>\n<p style=\"text-align:justify;\">Recent events like the failure of a number of banks in the US and in Switzerland, and its consequences have raised questions over the singleness of money, Bailey added.<\/p>\n<p style=\"text-align:justify;\">The remarks come after Bailey stressed in April that stablecoins, which are digital currencies pegged to the value of other assets like fiat, &#8220;purport&#8221; to be money but \u201cdo not have an assured value.\u201d<\/p>\n<p style=\"text-align:justify;\">His position on cryptocurrencies has been consistent, warning investors about the volatility and regulatory risks associated with these assets.<\/p>\n<p>The collapse of Terra\u2019s algorithmic stablecoin TerraUSD (UST) last year wiped out billions of dollars from the crypto market and prompted central banks and financial regulators to question the \u2018stability\u2019 of stablecoins.<\/p>\n<h2 style=\"text-align:justify;\">Bank of England\u2019s Retail CBDC Move<\/h2>\n<p style=\"text-align:justify;\">Last month, the BoE and the Bank for International Settlements (BIS) completed a year-long study into retail central bank digital currency (CBDC) payments, dubbed \u201cProject Rosalind.\u201d<\/p>\n<blockquote>\n<p style=\"text-align:justify;\">\u201cFrom the Bank of England\u2019s point of view, our main motivation for a retail CBDC would be to promote the singleness of money by ensuring that the public always has the option of going into fully functional central bank money that can be used in their everyday lives.\u201d<\/p>\n<\/blockquote>\n<p style=\"text-align:justify;\">Bailey made it clear that the bank\u2019s work on retail CBDC does not alter its commitment to issuing physical cash. \u201cCash is here to stay,\u201d he added.<\/p>\n<p style=\"text-align:justify;\">Recently, Tom Mutton, the head of the BOE\u2019s CBDC project said in an interview, that the central bank is still considering which technology would underpin its CBDC.<\/p>\n<p style=\"text-align:justify;\">Baily further said that the bank is receiving proposals to create digital money \u2013 \u2018digital pound,\u2019 in the form of stablecoins, issued by banks or non-banks.<\/p>\n<p style=\"text-align:justify;\">\u201cWe will shortly set out proposals for regulating systemic stablecoins, under powers contained in the Financial Services and Markets Act 2023.\u201d<\/p>\n<\/p><\/div>\n<p>Read the full article <a href=\"https:\/\/cryptonews.com\/news\/crypto-stablecoins-are-not-money-says-bank-of-england-governor-favor-of-enhanced-digital-money.htm\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Andrew Bailey, Governor of the Bank of England (BoE), has reiterated his stance against cryptocurrencies, during his recent speech at the Mansion House in London. Bailey, who has previously voiced his concerns about the speculative nature of digital currencies, said Monday that Bitcoins have \u201cno intrinsic value and are highly volatile.\u201d He also noted that [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":34082,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[243],"tags":[83],"class_list":["post-34081","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto","tag-featured"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Crypto and Stablecoins Are Not Money, Says Bank of England Governor in Favor of &#039;Enhanced Digital Money&#039; | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Andrew Bailey, Governor of the Bank of England (BoE), has reiterated his stance against cryptocurrencies, during his 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