It seems that the crypto space is simply rife with some of the most interesting opinions ever seen by some. Indeed, Andrew Bailey, the Governor of the Bank of England, is convinced that the current top dogs in the crypto space are ultimately doomed to fail. The reason for their sealed fate is the presence of its robust privacy features. Indeed, Bailey is of the opinion that these cryptocurrencies lack the structure and design needed to ensure their long-term survival in the face of regulation.
Too Much Privacy Apparently Bad For Business
During an online panel of the World Economic Forum, titled “Resetting Digital Currencies” and occurring on the 25th of January, Bailey had been given a question. This question was regarding cryptocurrencies and whether or not they’re going to stay for the long term.
Bailey stated that crypto will be present thanks to the payments industry innovating with it, but isn’t convinced that these current cryptocurrencies hold the governance, design, or arrangements to last. He simply didn’t believe that the originally-formulated cryptocurrencies will be able to cut it.
Regulators Not Too Keen On More Privacy
As for why he thinks so, Bailey pointed to how regulators are concerned regarding the levels of transactional privacy these cryptocurrencies afford the individual. Indeed, Bailey hammered the opinion that a privacy standard for transactions will be in the interest of the public at large. In Bailey’s opinion, this is the one big move that’s yet to come within the crypto landscape.
As one would imagine, Bailey didn’t have much of a positive opinion of privacy in stablecoins, either. In Bailey’s opinion, the public can’t have the assurance that these payments hold stable value without ultimately linking back to fiat currencies, which themselves are controlled by centralized states.
CBDC Development Going Strong
This was quite an interesting take on the matter, seeing as Bitcoin, an asset tied to nothing, didn’t quite get the message that it’s doomed for long-term failure. The asset rose to brand new highs this year, and is seemingly poised for another bull run at the time of writing.
It should be noted, however, that the BoE seems to be divided on its opinion of cryptocurrencies. The Chief Economist at the BoE, Andy Haldane, was of the opinion that the new monetary order might have cryptocurrencies be one of its key components.
Indeed, the BoE stands as one of the many central banks around the globe currently developing its own central bank digital currency (CBDC). The central bank is doing this just like the European Central Bank is doing, as well as the Reserve Bank of India.