Crypto to Fail Fundamental Test, BoE Says

Bank of England senior adviser belives digital assets have no value and they are slower
22 January 2019   430

Bitcoin and other cryptocurrencies do not pass basic tests of financial services, but still pose a threat to the stability of the traditional economy. This was stated by Bank of England senior adviser Hugh van Steenis in an interview with Bloomberg.

According to him, digital assets have no value, they are slower in circulation and cannot be considered an ideal unit of exchange.

He pointed out that the biggest problem for the Bank of England is the regulation of cryptocurrency turnover, in particular, the regulation of the activities of new members of the banking system.

What I love when meeting with Fintechs is their obsession with customers. The challenge is will they get customers before the traditional banks can innovate.

Hugh van Steenis

Senior adviser, Bank of England

At the same time, Hugh stressed that the transition to digital technologies, as well as the implementation of fintech solutions, are on the list of priorities of the Bank of England.

According to him, traditional companies and banks somehow adapt to the threat from fintech. However, this can be said with certainty when the technological costs for these goals exceed 25% of the total budget of financial institutions.

Recall that in December 2018, the Financial Action Task Force on Money Laundering (FATF) called on the UK government to strengthen oversight of the cryptocurrency industry.

South Koreans to Invest in Crypto Actively

In addition to the investment amounts, the share of those interested in investing in digital assets also increased
22 April 2019   95

The average amount of investments in cryptocurrency from South Korean invesetprs is $ 6,100, which is 64% more than last year, Cointelegraph reports.

According to a survey conducted by the Korean Fund for the Protection of Portfolio Investors, in addition to the investment amounts, the percentage of those interested in investing in digital assets also increased. Thus, 7.4% of the 2500 respondents have already acquired cryptocurrency (last year there were 6.4% of those). It is noteworthy that this figure has increased, despite several major break-ins of the South Korean crypto exchange, as well as tougher regulation of the industry.

Analysts connect the market with a recent bitcoin price jump and hope for a new bull rally.

Recall recently it became known that 94% of trust capital funds invest in cryptocurrency.