Bank of England Governor Andrew Bailey says there will be an element of “hard love” in regulating cryptocurrency. “What we can’t have is a world where innovation gets a free pass to ignore public interest. The likelihood that such an approach will not end well is too high, ”said the governor.
Bailey from the Bank of England wants to regulate crypto with “Tough Love”
Bank of England Governor Andrew Bailey spoke on Monday at the annual conference of financial trading organization The City UK on regulating cryptocurrencies.
He was quoted as saying, “We need to ensure, both domestically and in collaboration with international partners, that we understand and respond to the public interest issues that arise here.” Protecting financial stability while at the same time enabling innovation “in a world in which the public interest is clearly defined and protected”.
Emphasizes, “What we cannot have is a world where innovation is given a free pass to ignore public interest. The likelihood that such an approach will not end well is too high, ”said the governor:
There will inevitably be elements of hard love in such a process and some disappointed ambitions, but I am confident that a robust form of innovation will emerge from this.
Governor Bailey has long been a critic of cryptocurrencies. Last month he said cryptocurrencies are “dangerous” and reiterated that they “have no intrinsic value” and “only buy them when you are ready to lose all your money”.
He also talked about stablecoins, noting that they “have the potential to be systemic in terms of their importance to the financial system and its stability”. Bailey explained, “An important requirement will be to ensure that the stablecoin collateral assets cover the outstanding coin issuance at all times, unless the stablecoin is operating as a bank.”
Additionally, the Bank of England Governor warned against using cryptocurrencies for payments, stating:
They fluctuate greatly in value, which is why they are not a good means of payment overall.
Regarding the Bank of England’s work on a central bank digital currency (CBDC), he said the bank and the UK Treasury are weighing the potential to create one. “We will exchange with users, the technology sector, to understand the potential of these things,” he said.
What do you think of the Bank of England Governor’s comments on Bitcoin and Cryptocurrency regulation? Let us know in the comment section below.
Photo credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or approval of any product, service, or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.