Bank of England governor rejects BTC's similarity to money

by in Cryptocurrency News

Bank of England

Bitcoin has no value, but stablecoins can occupy a certain niche in the financial system. This was stated by the chairman of the Bank of England Andrew Bailey.

The head of the regulator noted the outgoing danger from decentralized assets like bitcoin, as well as interest in stablecoins and national digital currencies (CBDC).

“The stablecoins have collateral. Bitcoin doesn't have it, it's not the equivalent of money. The term “cryptocurrencies” is not accurate, ”the official explained.

Bailey recalled that the Bank of England is monitoring the actions of large technology companies that are exploring the possibility of issuing global stablecoins. He added that the financial policy committee has outlined its expectations for the principles of its regulation.

According to the head of the central bank, CBDCs can play "an important role in maintaining and expanding access to fiat by retail users."

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Recall that in June, the Bank of England announced the need to apply the rules on bank payments to stablecoins.

At the last meeting, the leaders of the G7 countries reaffirmed that no global stablecoin project should begin work until it is fully compliant with legal, regulatory and supervisory requirements.

Earlier, the head of the Fed, Jerome Powell, noted the priority of regulating stablecoins, which may at one moment become systemically important.

In a report on the international role of the euro, the ECB warned of problems for central banks in the absence of their own CBDCs.

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In May 2020, the regulator considered three use cases for the Facebook-curated digital currency Diem. Analysts have calculated that the volume of funds directed to the global version of the stable currency could range from € 152.7 billion to € 2.93 trillion.

In May 2021, the Diem project announced plans to launch in the US with a focus only on the US market.

In February, Amazon announced a set of developers for the digital currency project.