Cryptocurrencies, including bitcoin, are not suitable for the world of payments due to their volatility, Bank of England Governor Andrew Bailey (pictured) stated on Thursday.
Speaking at the Brookings Institution’s virtual event, UK’s central bank governor asserted that cryptocurrencies have “no connection at all to money,” but hinted that these assets’ downsides could be overcome through the use of stablecoins.
“They [cryptocurrencies] may have extrinsic value – you may like to collect them for instance, and as such they are a highly risky investment opportunity. Their value can fluctuate quite wildly, unsurprisingly. They strike me as unsuited to the world of payments, where certainty of value matters,” Bailey said, adding on the other hand that “where a stablecoin is used to facilitate the transfer of ‘money’ for buying goods and services and the settling of debts, then it may become widely used a means of payment and store of value.”