Bank of England Boss Pledges ‘Tough Love’ in Cryptocurrency Regulation – Regulation Bitcoin News

Bank of England Governor Andrew Bailey says there will be an element of “hard love” in regulating cryptocurrency. “What we can’t have is a world where innovation gets a free pass to ignore the general interest. The odds that such an approach will not end well are too high, ”the governor said.

Bank of England Bailey Wants to Regulate Crypt With ‘Hard Love’

Bank of England Governor Andrew Bailey spoke about cryptocurrency regulation on Monday at the annual conference of financial trading body The City UK.

He was quoted as saying, “We must, both domestically and working with international partners, ensure that we understand and respond to the public interest issues that arise here.” He said it would allow the Bank of England to safeguard financial stability, allowing innovation “in a world where the public interest is well defined and protected.”

Emphasizing, “What we can’t have is a world where innovation gets a free pass to ignore the general interest. The odds that such an approach doesn’t end well are too high,” the governor detailed:

There will inevitably be elements of hard love in such a process, and some disappointed ambitions, but I am sure that from it will come a robust form of innovation.

Governor Bailey has long criticized cryptocurrencies. Last month, he said cryptocurrencies are “dangerous,” reiterating that they “have no internal value” and “Buy them only if you’re willing to lose all your money.”

He also spoke of stablecoins, noting that they “have the potential to be ubiquitous in terms of their importance to the financial system and its stability.” Bailey elaborated, “A key requirement will be to ensure that, unless the stablecoin functions as a bank, the support assets for stablecoins cover the outstanding currency.”

Additionally, the Governor of the Bank of England warned against using cryptocurrencies for payments, stating:

They change their value a lot, so they are generally not a good way to pay.

Addressing the Bank of England’s work on a central bank’s digital currency (CBDC), he said the bank and the UK Treasury are considering the possibility of creating one. “We will work with users, the technology sector, to understand the potential of these issues,” he said.

What do you think of the comments of the Governor of the Bank of England on regulation of bitcoin and cryptocurrency? Let us know in the comments section below.

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