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.