Bitcoin Comment from the Governor of Bank of England
Governor of the Bank of England made a comment on Bitcoin. Bailey thinks cryptocurrencies won’t survive for long.
Bank of England Governor Andrew Bailey shared his views on all other cryptocurrencies, including Bitcoin (BTC). Cryptocurrencies were among the important topics of the World Economic Forum meeting held this year. Speaking at the forum’s panel “Resetting Digital Currencies”, Bank of England Governor Andrew Bailey expressed his belief that no current cryptocurrency, including the leading cryptocurrency Bitcoin (BTC), will survive for long.
Focusing on the concepts of “design, management and regulation,” Bailey stated that none of the cryptocurrencies currently used have a good report. Pointing out that digital currencies need to be regulated in three areas, Bailey explained those areas as follows: Ensuring value stability, combating financial crimes and protecting the privacy of personal data.
Bank of England (BoE) Governor Bailey said:
“The problem that payments are made in something of fixed value, ultimately returns us to currencies that we call ‘fiat money’, which have a connection with the state.”
Bailey is Worried About Leading Cryptocurrencies
The supply issue, which has been highlighted recently as investors have begun to substitute Bitcoin for valuable assets like gold, means trouble for Bailey. For Bailey, the inability to expand supply is a problem as the needs of the economy increase. On the subject, Bailey says:
“Another problem with Bitcoin is that the supply is fixed. The quantity cannot be increased. But the money supply must expand to meet the growing needs of a growing economy.”
In a speech he gave two weeks ago, European Central Bank President Christine Lagarde stated that cryptocurrencies are frequently used in illegal activities, so they should be regulated. After Lagarde, the new US Treasury Secretary, Janet Yellen, also announced that she was worried about cryptocurrencies for the same reason.
On the other hand, looking at the research data of the Blockchain analysis platform Chainanalysis, it was seen that the rate of use of cryptocurrencies in illegal activities was below 4 per thousand. According to these data, it is possible to say that the times when cryptocurrencies were used for illegal purposes are over.
This article has contributions of Investing.com.