Bank of England Governor dismisses Bitcoin as means of payment
Last Updated on 4 September 2020 by CryptoTips.eu
Bitcoin continues to face opposition from traditional finance institutions as the Bank of England Governor Andrew Bailey becomes the latest to dismiss the cryptocurrency as a form of payment.
According to Forbes, the UK central bank governor revealed in a webinar his disdain for Bitcoin (BTC). Bailey when trying to assess whether cryptos can be used as a store of value or a means of payment came to a scathing conclusion.
He believes that crypto assets like Bitcoin have no connection to real money due to the fluctuations of their value. This according to the Bank chief makes it unsuitable as a form of legal tender for real world payments since the certainty of value is an important factor for any fiat currency.
Central Bank Chief compares crypto landscape to Rock and Roll
Bailey also further claimed that the crypto landscape was similar to the famous Beatles concept of Rock and Roll with its numerous highs and lows. He also believes that serious financial investors should put their money in stablecoins rather than Bitcoin and altcoins, which are not reliable (according to Bailey).
This is not the first time that the central bank chief would be opposed to Bitcoins while preferring stablecoins. In July, Bailey had explained that the UK apex bank was considering the creation of a stablecoin.
Furthermore, in his recent webinar, he explains that stablecoins:
Could offer benefits as long as consumers can use them with confidence.
Or, according to him, exceed certain limitations by increasing the speed and reducing the cost of payments.
It is difficult to understand why he willfully ignores the potentials of the cryptocurrency landscape. With a central bank governor so averse to cryptocurrencies, the UK may not be among the first to develop a digital currency based on its fiat currency.
