Discussing the prospects for digital money, Andrew Bailey stated that central bank digital currencies will become a key element of the financial system, but they should not supplant existing forms of money. State cryptocurrencies will play a decisive role in the future of money, so central banks should not neglect their launch. However, planning and preparation for the introduction of digital currencies by the Central Bank should be carried out carefully and without haste, Bailey said.
According to Bailey, the future of stablecoins and other cryptocurrencies remains vague, but governments will make a big mistake if they fail to develop a regulatory framework for them and favorable conditions for development. Despite the fact that cryptocurrencies are considered a speculative asset class, stablecoins can be considered a form of money, the Governor of the Bank of England noted. Therefore, if stablecoins are ever to be recognized as such, they should be regulated on a par with traditional finance.
The UK has been in the “race” to develop a central bank digital currency for several years now. In recent months, the Bank of England began to work on this task especially actively. Now the British central bank is preparing to expand its digital currency development team to 30 people.
The digital British pound has already received the bright nickname “Britcoin”. However, Bank of England governor Jon Cunliffe clarified that people should not associate the digital pound with crypto assets, especially bitcoin.
Source: Bits
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