The Bank of England named the risks and benefits of cryptocurrencies

United Kingdom Great Britain
United Kingdom Great Britain

The technology behind cryptocurrencies has its advantages, and the digital pound has the potential to become an anchor for digital money. This was stated by the incoming Deputy Governor of the Bank of England, Sarah Breeden, writes CoinDesk.

During a speech in parliament, the official explained that unsecured cryptocurrencies have no intrinsic value, as shown by the collapse of Terra, as well as the Silvergate and Signature banks. The asset class does not yet pose a major risk to financial stability, although this could change in the future, she added.

According to Breeden, the latter could happen if the relationship with TradFiespecially with the active use of stablecoins for payments.

A Bank of England spokeswoman stressed that digital assets should not be treated as gambling. Instead, she suggested treating them as financial activities.

“Given the global nature of these markets, it is important that regulators work together around the world to promote comprehensive and consistent approaches to regulation and supervision,” Breeden pointed out.

The official supported the approval of CBDC, noting its potential to become “an anchor for all money in the digital world,” with the caveat of the need to address privacy concerns.

Let us recall that in March, Bank of England representative Katie Fortune allowed the coexistence of CBDC and cryptocurrencies.

Earlier, G20 member countries approved the recommendations of the Financial Stability Board and IMF on regulation, supervision and control of digital assets.

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