{"id":120544,"date":"2023-07-10T22:23:05","date_gmt":"2023-07-10T22:23:05","guid":{"rendered":"https:\/\/dripp.zone\/news\/boe-governor-trashes-crypto-stablecoins-in-favor-of-enhanced-digital-money-crypto-news\/"},"modified":"2023-07-10T22:23:07","modified_gmt":"2023-07-10T22:23:07","slug":"boe-governor-trashes-crypto-stablecoins-in-favor-of-enhanced-digital-money-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/boe-governor-trashes-crypto-stablecoins-in-favor-of-enhanced-digital-money-crypto-news\/","title":{"rendered":"BOE governor trashes crypto, stablecoins in favor of ‘enhanced digital money’\n – Crypto News"},"content":{"rendered":"
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Andrew Bailey, a Bank of England (BOE) governor, delivered<\/a> a speech July 10 in which he moved smoothly from the central bank’s efforts to control inflation and maintain public trust in financial institutions to why cryptocurrencies are not money. Instead of cryptocurrencies and stablecoins, he would prefer “enhanced digital money.”<\/p>\n

The spate of bank failures in the United States<\/a> and Switzerland earlier this year revealed issues of the singleness<\/a> of money and settlement finality, Bailey said. Both cryptocurrencies and stablecoins fail basic tests of singleness and settlement finality, he said, without elaborating. “They’re not money,” Bailey said. The passage of the Financial Services and Markets Act would bring stablecoins into line, however.<\/p>\n

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Bank of England Governor Andrew Bailey says inflation is likely to drop “markedly” this year and that the full impact of rate increases has yet to hit the economy https:\/\/t.co\/kntdoEKYPr<\/a><\/p>\n

\u2014 Bloomberg Economics (@economics) July 10, 2023<\/a><\/p><\/blockquote>\n

Digital money, as it already exists, “entirely held in IT systems,” could be enhanced to become “a unit of money to which there is the capability to attach a lot more executable actions, for instance, contingent actions in so-called smart contracts,\u201d Bailey said. <\/p>\n

Related: Bank of England governor questions need for digital pound<\/a><\/em><\/strong><\/p>\n

A central bank digital currency (CBDC) would also be a form of enhanced digital money, Bailey said. \u201cThere is no reason that I can think of which makes well-designed enhanced digital money the sole preserve of central banks,\u201d he added, but a CBDC would present distinct advantages:<\/p>\n

\u201cOur main motivation for a retail CBDC would be to promote the singleness of money by ensuring that the public always has the option of going into fully functional central bank money that can be used in their everyday lives.\u201d <\/p><\/blockquote>\n

Bailey had a different view of wholesale CBDCs. The BOE has just upgraded its Real-Time Gross Settlement (RTGS) system. Bailey said:<\/p>\n

\u201cThis puts us in a very strong position to deliver solutions which can integrate central bank digital money in RTGS with tokenized transactions. We think this is the fastest and most efficient route to take.\u201d <\/p><\/blockquote>\n

That is without creating a wholesale CBDC, it seems. Bailey added that “cash is here to stay.” <\/p>\n

Collect this article as an NFT<\/a><\/em><\/strong> to preserve this moment in history and show your support for independent journalism in the crypto space.<\/em><\/em><\/p>\n

Magazine: Crazy outcomes when current laws applied to NFTs and the metaverse<\/a><\/em><\/strong><\/p>\n