The technologies underlying cryptocurrencies have their advantages, and the digital pound could become an anchor for digital money, according to the incoming Bank of England deputy governor, Sarah Breeden, in remarks reported by CoinDesk.
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In testimony to Parliament the official explained that unbacked cryptocurrencies have no intrinsic value, as demonstrated by the коллапс Terra, and the Silvergate and Signature banks.
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In Breeden’s view, the latter could occur if ties with TradFi strengthen, especially with active use of stablecoins for payments.
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The BoE official stressed that digital assets should not be treated as gambling. Instead, she urged considering them as a financial activity.
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\”Given the global nature of these markets, it is important that regulators work together worldwide to promote comprehensive and consistent approaches to regulation and supervision,\” Breeden said.
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The official backed CBDC approval, noting its potential to become “an anchor for all money in the digital world” with a caveat about privacy safeguards.
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Earlier, in March, Katy Forchun of the Bank of England allowed the coexistence of CBDC and cryptocurrencies.
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Earlier, G20 members approved recommendations of the Financial Stability Board and IMF on regulation, supervision and oversight of digital assets.