• Bank of England Governor Andrew Bailey has criticized crypto assets such as Bitcoin and stablecoins, saying they do not qualify as money.
• He suggests that enhanced forms of digital money could be used in the existing financial system that would satisfy basic tests of singleness and settlement finality.
• Bailey believes there is a future for digital money, but it will require imagination to find its use cases.

Bank of England Governor Blasts Crypto Assets

Bank of England’s governor Andrew Bailey has expressed his criticism for crypto assets such as Bitcoin (BTC) and stablecoins, claiming that they do not meet the standards required for safe money in the financial system. He emphasizes that these assets are best treated as highly speculative investments instead.

Enhanced Forms Of Digital Money

Bailey suggests that there are enhanced forms of digital money which have the capability to attach executable actions through smart contracts, which could either be simple or complex. He further adds that these forms could pass the basic tests of singleness and settlement finality, making them suitable for use in the existing financial system.

A Future For Digital Money?

The Bank of England governor believes there is a future for digital money, despite it being difficult to predict what type of use cases will emerge from its development. He urges people to avoid “a failure of imagination” when trying to understand what this type of asset can be used for in the future.

Highly Speculative Investments

Bailey warns against using crypto assets like Bitcoin as a form of investment due to their volatility and lack of intrinsic value. As he explains, these types should only be treated as speculative investments with caution taken into account when entering into any transactions involving them.

Conclusion

Overall, it appears that Andrew Bailey is skeptical about cryptocurrency’s ability to serve as a form of traditional currency due to its current limitations. However, he also thinks there may be potential for more advanced forms if given enough creativity and effort towards developing them properly..