President of the Bank of England “Cryptocurrency can’t be forever… legal currency must be innovated”
The head of the British Central Bank, the Bank of England, said that the existing cryptocurrency cannot be sustained, and that digital innovation should be conducted around the legal currency.
According to CoinDesk on the 25th (local time), British Bank Governor Andrew Bailey said at Davos Agenda Week that “existing cryptocurrencies have not solved the governance problems required to be used as currency.”
In a panel discussion at Davos Agenda Week, the governor said that payment infrastructure innovation is currently underway and that digital currencies are breaking down long-standing barriers such as speed and cost.
However, in order for currency to be sustainable, it is necessary to find an appropriate design and governance model, and existing cryptocurrencies do not have the level to guarantee sustainability in this respect, he explained.
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In particular, he pointed out the volatility of cryptocurrencies such as bitcoin as a problem, saying, “People want to make payments as a stable medium.”
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Governor Bailey proposed fiat-based innovation. In particular, he appreciated the possibility of stablecoin and central bank digital currency (CBDC) as a sustainable payment method.
“We need to discuss stablecoins and deal with CBDC,” said Bailey. “These issues are very likely.”
The Davos Forum is an international private conference held in Davos, Switzerland at the beginning of each year. This year, due to the influence of Corona 19, the main event is postponed to May, and pre-event’Davos Agenda Week’ is being held online from the 25th to the 29th.
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