Bank of England governor calls cryptocurrencies ‘dangerous’

Cryptocurrencies and similar digital assets are a danger to the public, according to the Bank of England’s Andrew Bailey.

"I'm sceptical about crypto-assets, frankly, because they're dangerous and there's a huge enthusiasm out there," the governor told the British parliament’s Treasury select committee on Monday.

It’s not the first time Bailey has expressed his scepticism about digital assets.

In January he said that the cryptocurrencies do not have a structure that is likely to work as a payment alternative over the long term.

At an event hosted by the World Economic Forum, he also brought up the issue of privacy, saying that it is an underestimated challenge of creating a digital currency.

However, earlier this month, two key execs at the Bank of England publicly spoke about the possibility of a state-run digital currency. [Link]

Banking regulations

This week the governor also revealed that banking regulations would be assessed following the winding down of Wyelands Bank, which is currently under investigation by the Serious Fraud Office.

Bailey told the select committee that there could be lessons learned around buyout rules.
“We will go back and look at the lessons,” he said. “There have been some changes to the rules around acquisitions in recent years, but it is something we will go back to.”

He also said that while the bank had pushed Wyelands to reduce activities over the past 12 months, a further probe could unearth practices that need more investigation.

    Share Story:

Recent Stories

The Future of Intelligent Finance
FStech Group Editor Mark Evans sits down with Jason Cao, President of Global Financial Services Business Unit, Enterprise BG at Huawei ahead of its Intelligent Finance Summit which was held on 3rd and 4th of June in Shanghai. This Q&A delves into key trends in digital transformation of the financial services industry as well as a look at how data, robotic infrastructure, intelligent storage and innovative technologies are shaping the future for FSIs.

The Rise of Instant Payments
Instant payments are creating new business opportunities for banks by providing more touchpoints than ever. With these evolutions underway, Featurespace brought leading industry experts together to discuss how they are protecting customers from fraudsters in real time, utilizing innovative and disruptive solutions to reduce fraud. Click here to find out more.

Offloading Cyber Risk in the Cloud
As cyber attacks and data breaches are in the news on an increasingly regular basis - with regulatory penalties and customer trust on the line for financial services firms - it has never been more crucial to be compliant in the cloud.

This video, with Akamai’s EMEA director of security technology and strategy Richard Meeus, will help explain what your company can be doing to make sure it’s not embroiled in the next big fine or front-page scandal.