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Bank of England governor: Bitcoin’s days are numbered

Christian Fernsby |
The governor of the Bank of England, Andrew Bailey, has warned that digital currencies such as Bitcoin will not last long in their current form.

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Topics: ENGLAND   

Speaking during a panel on digital currencies at the World Economic Forum on Monday, Bailey said while digital innovation in payments was likely to remain, cryptos in their current form were unlikely to last despite a recent surge in the value of Bitcoin.

“There have been huge innovations in payments in recent years but we still have some very big gaps to fill…Have we landed on what I would call the design, governance and arrangements for a lasting digital currency? No, I don't think we're there yet. I don’t think cryptocurrencies as originally formulated are it”, Bailey said.

However, the central bank governor said there is room for innovation, particularly concerning stablecoins, cryptocurrencies that derive their value from a different asset or basket of assets such as the US dollar or gold.

“The whole question of people having assurance that their payments are going to be made in something with stable value”, Bailey said.

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