Cryptocurrencies aren’t going to last, the Bank of England’s governor has warned.
Speaking on a panel at the World Economic Forum, Andrew Bailey said he believes digital payments are here to stay — but warned the assets currently on the market are ill-equipped to provide what consumers and businesses need. He added:
“Have we landed on what I would call the design, governance and arrangements for a lasting digital currency? No, I don't think we're there yet.”
And although Bailey said that a “privacy standard for transactions” needs to be created to protect the public, he warned the levels of privacy offered by major cryptocurrencies right now is something that concerns regulators.
The Bank of England governor has long been a vocal critic on Bitcoin — previously warning investors that they should be prepared to lose the shirt off their back (and all their money) if they buy into this crypto.
Despite that, research from the U.K.’s Financial Conduct Authority in June 2020 found that approximately 1.9 million Britons owned cryptocurrency — with 75% of them having funds of less than £1,000 in value.
Generally, this regulator found that many consumers understood the risks associated with owning cryptocurrency — namely how volatile it is, and the fact that they may not be protected in the event that their wallet or exchange is targeted by malicious actors.
Over on CNBC’s Squawk Box program, Goldman Sachs CEO Lloyd Blankfein warned that he expects Bitcoin to face tougher restrictions in the future, adding:
“If I were a regulator, I would be kind of hyperventilating at the success of it at the moment, and I’d be arming myself to deal with it.”
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