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  • On January 25, the Bank of England Governor Andrew Bailey discussed several topics, including cryptocurrencies.
  • Bailey stated that existing cryptocurrencies are unlikely to last in the long-term.
  • According to the governor, the design and governance of digital currencies are not optimal yet.

Andrew Bailey has just participated in a session focused on the emergence of central bank digital currencies (CBDCs). The Governor stated that existing cryptocurrencies are simply not good enough to last over the long term adding: 

Have we landed on what I would call the design, governance and arrangements for what I might call a lasting digital currency? No, I don’t think we’re there yet, honestly. I don’t think cryptocurrencies as originally formulated are it.

This statement implies that although existing cryptocurrencies are not good enough, there could be in the future. Bailey has called for more regulations of digital assets, which is a good thing for the entire cryptocurrency ecosystem. 

The main concern of Andrew Bailey is that cryptocurrencies can’t maintain a stable value currently. 

The whole question of people having assurance that their payments will be made in something with stable value … ultimately links bank to what he call fiat currency, which has a link to the state