The head of the Bank of England (BoE) slows down the development of the central digital currency
Governor Andrew Bailey of the Bank of England (BoE) has clearly expressed caution regarding the launch of the digital pound. He has signaled doubts about whether the central bank needs a cryptocurrency for everyday consumers.
In a speech at a conference in Kyiv, Bailey emphasized that they are not yet “confident that new forms of money need to be created” to tap into the potentials of smart payments, fraud prevention, or smart contracts. This shows the clear hesitation of UK authorities.
The Bank of England slows down the development of the digital pound
Although still in the survey stage, the United Kingdom is far behind other countries such as China and Europe in the race to develop CBDC for consumer applications. Although it has collaborated with the Treasury, the BoE has not yet made a final decision on whether this project will continue.
According to reports, Bailey confirmed that the bank is making solid progress in issuing cryptocurrency for commercial purposes, but is not very enthusiastic about a household version.
“It is hard to imagine if we do not expand our thinking,” Bailey commented. “However, I still need more evidence to be confident that it is necessary to develop a central bank digital currency for consumers.”
Meanwhile, competitors like China and the European Union are moving faster in this game. The UK government is still considering the possibility of issuing a digital pound alongside cash and traditional bank savings.
Bailey's statements indicate that for the UK, the main question is not just technology, but also whether they actually need it.
Bailey warns investors about the risks of cryptocurrency
The Bank of England has also spoken about digital assets, labeling Bitcoin and related currencies as “risky assets” that investors should be cautious about. This warning comes as the Treasury is expected to lift the ban on certain cryptocurrency-related investments.
The global cryptocurrency market has rebounded strongly after Donald Trump's victory in the U.S. presidential election. Bitcoin, the largest cryptocurrency, soared by up to 62.3% in just 12 months, and the new BTC price reached a record level of nearly $112,000. The total market capitalization of cryptocurrency currently stands at around $3.3 trillion.
In addition to electronic assets, Bailey also raised concerns about the structure of the global financial system. He questioned whether the financial regulations following the 2008 crisis are overly necessary and overlook less regulated, informal financial sectors.
He asserted that stricter rules are necessary to protect the common interest, especially in the context of a crisis that profoundly affects the global economy.
Source: https://tintucbitcoin.com/chu-tich-boe-tranh-luan-ve-tien-so-pound/
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