{"id":44434,"date":"2021-06-16T12:53:57","date_gmt":"2021-06-16T09:53:57","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=44434"},"modified":"2025-08-31T16:59:18","modified_gmt":"2025-08-31T13:59:18","slug":"boe-chief-rejects-parallels-between-bitcoin-and-money","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/boe-chief-rejects-parallels-between-bitcoin-and-money\/","title":{"rendered":"BoE chief rejects parallels between bitcoin and money"},"content":{"rendered":"<p>Bitcoin has no intrinsic value, but stablecoins may carve out a niche in the financial system. This was <a href=\\\"https:\/\/www.bankofengland.co.uk\/speech\/2021\/june\/andrew-bailey-cityuk-annual-conference\\\">stated<\/a> by Bank of England Governor Andrew Bailey.<\/p>\n<p>\\n\\n<\/p>\n<p>The head of the regulator noted the outward danger from decentralized assets such as bitcoin, as well as interest in stablecoins and central bank digital currencies (CBDCs).<\/p>\n<p>\\n\\n<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p><em>&#8220;Stablecoins are backed. Bitcoin has none; it is not money. The term &#8216;cryptocurrency&#8217; is not precise.&#8221;<\/em>, the official explained.<\/p>\n<\/blockquote>\n<p>\\n\\n<\/p>\n<p>Bailey noted that the Bank of England is monitoring the actions of large technology companies exploring the possibility of issuing global stablecoins. He added that the Financial Policy Committee<a href=\"https:\/\/forklog.com\/en\/news\/bank-of-england-weighs-regulation-of-stablecoins\"> laid out<\/a> its expectations regarding the principles of their regulation.<\/p>\n<p>\\n\\n<\/p>\n<p>According to the central bank chief, CBDCs could play \u201can important role in maintaining and expanding access to fiat for retail users.\u201d<\/p>\n<p>\\n\\n<\/p>\n<p>In June, the Bank of England <a href=\"https:\/\/forklog.com\/en\/news\/bank-of-england-weighs-regulation-of-stablecoins\">said<\/a> it was necessary to apply banking-payment rules to stablecoins.<\/p>\n<p>\\n\\n<\/p>\n<p>At the latest G7 leaders\u2019 meeting, they <a href=\"https:\/\/forklog.com\/en\/news\/g7-affirms-requirements-for-regulating-global-stablecoins\">confirmed<\/a> that no global stablecoin project should commence operation until full compliance with legal, regulatory and supervisory requirements is achieved.<\/p>\n<p>\\n\\n<\/p>\n<p>Earlier, the head of the <span data-descr=\\\"Federal Reserve System\\\" class=\\\"old_tooltip\\\">Fed<\/span> Jerome Powell <a href=\"https:\/\/forklog.com\/en\/news\/jerome-powell-says-regulating-stablecoins-is-a-fed-priority\">noted<\/a> the priority of regulating stablecoins, which could at any moment become systemically important.<\/p>\n<p>\\n\\n<\/p>\n<p>In a report on the international role of the euro, <span data-descr=\\\"European Central Bank\\\" class=\\\"old_tooltip\\\">ECB<\/span> <a href=\"https:\/\/forklog.com\/en\/news\/ecb-flags-risks-for-central-banks-without-their-own-cbdcs\">warned<\/a> of problems facing central banks in the absence of their own CBDCs.<\/p>\n<p>\\n\\n<\/p>\n<p>In May 2020, the regulator considered three scenarios for using Facebook&#8217;s regulated digital currency Diem. Analysts estimated that the volume of funds directed to the global version of the stablecoin could range from \u20ac152.7 billion to \u20ac2.93 trillion.<\/p>\n<p>\\n\\n<\/p>\n<p>In May 2021, the Diem project <a href=\"https:\/\/forklog.com\/en\/news\/diem-withdraws-swiss-license-application\">stated<\/a> plans to launch in the United States with a focus on the American market only.<\/p>\n<p>\\n\\n<\/p>\n<p>In February, Amazon <a href=\"https:\/\/forklog.com\/en\/news\/amazon-announces-recruitment-drive-for-developers-for-a-digital-currency-project\">announced<\/a> a developer kit for a digital currency project.<\/p>\n<p>\\n\\n<\/p>\n<p>Subscribe to ForkLog news on <a href=\\\"https:\/\/vk.com\/forklogcom\\\" target=\\\"_blank\\\" rel=\\\"nofollow noopener\\\">VK<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin has no intrinsic value, but stablecoins may occupy a niche in the financial system. This was stated by Bank of England Governor Andrew Bailey.<\/p>\n","protected":false},"author":1,"featured_media":44435,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[216,18,1095,2049,807],"class_list":["post-44434","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bank-of-england","tag-bitcoin","tag-cbdc","tag-diem-association","tag-stablecoins"],"aioseo_notices":[],"amp_enabled":true,"views":"12","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/44434","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=44434"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/44434\/revisions"}],"predecessor-version":[{"id":44436,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/44434\/revisions\/44436"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/44435"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=44434"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=44434"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=44434"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}