Bank of England's Andrew Bailey says Bitcoin is 'not money'

The Governor of the Bank of England said today that cryptocurrencies like Bitcoin are "not money", but added that stablecoins – cryptoassets pegged to fiat currencies – could become "systemic" in the financial system. Governor Andrew Bailey warned in TheCityUK's annual conference speech that there will be "hard love" for fintech companies, but added that the UK will experience "a solid form of innovation". Bailey has repeatedly said that the UK central bank is exploring stablecoins, crypto assets pegged to fiat currencies like the euro or the US dollar, and the benefits of central bank digital currencies (CBDCs). But Bailey has repeatedly warned of the perceived dangers of decentralized digital assets like Bitcoin. “Stablecoins have the potential to be systemic in terms of their importance to the financial system and its stability,” he said. “They [stablecoins] are different from cryptoassets like Bitcoin, which have no backing and therefore no anchors to stabilize value. A crypto asset is not money (hence the term cryptocurrency is misleading) and has no real value because it has no backing.” Bailey added: “I've met libertarian-minded crypto enthusiasts who don't trust the value of something backed by anything more than something backed by the government. Suffice it to say I disagree.” Bailey went on to say that major tech platforms can issue stablecoins, so the central bank is keeping an eye on them. “The Bank of England Financial Policy Committee has set its expectations to inform the design and regulation of stablecoins,” he said. Crypto's Cold War: The US and China's Battle for Blockchain Supremacy Stablecoin is a digital asset that aims to reduce price volatility, often backed by fiat currency. Unlike Bitcoin or Ethereum, stablecoins do not tend to fluctuate in value. Stables like Tether's U for crypto investors and traders

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