Bank of England Governor Andrew Bailey said that in the long term, the current generation of cryptocurrencies is doomed to failure due to lack of stability and reliability.
Speaking at the World Economic Forum’s online panel on digital assets, he was skeptical about the future of cryptocurrencies. According to Bailey, they do not have the potential to survive in the long term, but they will bring necessary innovations to the digital payments industry, such as high speed and low cost..
The main disadvantages of existing cryptocurrencies the governor of the UK central bank considers poor design, structure and internal mechanisms. Adding that the current level of transaction confidentiality is of concern to regulators and that their use as a means of payment does not provide the necessary stability.
Therefore, he predicts that the best innovations will ultimately form the basis of fiat-based projects. However, for this, there are still many problems to be solved..
The head of the Bank of England considers the current cryptocurrencies not reliable enough for
Recall that recently, the chief market strategist of one of the world’s largest financial conglomerates, Barclays, called Bitcoin an inappropriate investment option..
text: Ivan Malichenko, photo: Bloomberg