Bank of England governor: Bitcoin has nothing to do with money

During a Brookings Institution‑organised virtual conference, Bank of England Governor Andrew Bailey заявил that cryptoassets ‘are not suitable for the world of payments’.

In his view, Bitcoin is an asset that ‘has nothing to do with money’. He is reluctant to believe that cryptoassets are a suitable investment option because ‘their value can fluctuate in fairly wide ranges’.

He also believes that stablecoins have great potential and can offer ‘useful benefits’, reducing payment frictions.

“If stablecoins are widely used as a means of payment, they must have standards equivalent to those that apply today to other forms of payments,” he added.

According to Bailey, holders of stablecoins should have a guaranteed ability to convert their funds to fiat at any moment. The head of the institution noted that the starting point for discussions on a global stablecoin should be a single currency, but he did not rule out the idea of a multi‑currency asset.

Earlier, the Bank of England described stablecoins as a potential threat to the banking system’s credit framework.

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