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  • Financial Policy Committee (FPC) has monitored cryptocurrencies in the last four years.
  • Cryptos volatile nature makes them bad for storing value.

The deputy governor Dave Ramsden of the United Kingdom central bank is reported to have said that extreme volatility in cryptocurrencies makes them bad store of value. The comments by Ramsden were published in an interview conducted by CNBC on April 30.

According to the Bank of England (BoE) deputy governor, over the last four years, Financial Policy Committee (FPC) has monitored cryptocurrencies and has come to a conclusion that their volatile nature is bad for storing value. In addition to that, the FCP said that the digital assets were not a good medium for exchange due to the high cost of transactions associated with them.

Moreover, the deputy governor said that the FPC had concluded that cryptos do not meet the requirements to be defined as currencies. However, their small market value is not a threat to financial stability.