Crypto-doubt – While some State Central Banks are throwing themselves headlong into the race for cryptocurrencies, the central bank of england, yet not necessarily cautious in the face of cryptos, seems to be plagued by doubt. This is at least what its governor announces: Andrew Bailey who does not see the creation of a digital sterling as a necessity. Explanations.
Cryptocurrencies and MNBC in England: to be or not to be, that is the question
For the Governor of the Bank of England, the MNBC, Digital Currencies of Central Banks, are not relevant despite legislation that would like to create a legal framework for cryptocurrencies. He declaredindeed, that he sees no sufficient reason to create a digital currency issued by the Central Bank of England.
“I don’t see a strong reason for the Bank of England to issue a digital currency. A lot of work is going on around the world and we are part of it (…). We will continue to monitor developments and assess whether the case for issuing a digital currency evolves.”
Andrew Bailey, Governor of the Central Bank of England – Source: Reuters
An MNBC race that will be without England
It is not for the banking man to hide in the sand, quite the contrary. Bailey had already, earlier in the year, granted many advantages to cryptocurrencies and especially to MNBCs such as increased financial inclusion, or even the possibility of combating money laundering.
But, then, what are the reasons that lead Andrew Bailey to refuse a digital pound sterling ? According to him, the crypto system current would work quite well so that the need for a digital book does not arise. Moreover, it would seem that the race for the digital euro, started by Europe, does not encourage Great Britain to launch into the deep end.
This statement therefore rubs off with the many central banks around the world who have decided to take the plunge into state cryptocurrencies in an attempt to catch up with China, which already has a good head start. Russia or even Iran are not behind in this race either: the latter plan to launch a gold-backed stablecoin.
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