Bank of England | Still waiting for a digital reference currency

Bank of England | Still waiting for a digital reference currency

(London) The governor of the Bank of England refuses to see the current cryptosystems as the next digital reference currencies, he said on Monday at the World Economic Forum, with no alternative being ready for the moment.

Published on 25 January 2021 at 1:18 pm

« I don’t think that digital currencies as originally conceived » meet the criteria for « governance of a sustainable digital currency, » explained Andrew Bailey at a roundtable discussion at the annual economic meeting, which exceptionally left the snows of Davos for a completely virtual format.

« We are not there yet, » the Governor continued, referring to a possible reference digital currency, despite the many innovations in the payments sector,

He then insisted on the criticisms that are generally levelled at cryptomoney: high volatility, possible use for the benefit of criminal activities and, more broadly, their opacity.

The Bank of England and the Treasury are working jointly « on the issue of the issue of digital currencies, complementary to cash, by central banks », the Treasury had indicated last November.

And they are not the only ones. At the beginning of January, the President of the European Central Bank Christine Lagarde addressed the issue, imagining a « digital euro » within five years.

Janet Yellen, chosen by the new US President Joe Biden to head the Economics Department, was auditioned last Tuesday by US Senators and said that cryptomoney was « mainly used » to finance illegal activities and that it was a « particular concern ».

The government, she added, must examine ways to limit their use and ensure that they do not become a means of laundering dirty money.

Bitcoin, the world’s first cryptocurrency, soared earlier this year to an all-time high of nearly US$42,000. It was trading on Monday around 12:50 p.m. just under US$34,000.

Bank of England | Still waiting for a digital reference currency
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