Cryptocurrency could be part of future UK banking system
Bank of England Governor Andrew Bailey said that retail banking payments should be a priority of “emergency” digital reforms.
In his annual Mansion House dinner speech, Mr. Bailey said that British should use the potential of digital technology for retail payments both in the UK and internationally in order to help Britain’s future -resistant payment infrastructure and increase growth in the UK.
However, he added a dose of skepticism on any plan for a digital pound.
He repeated concerns about the so -called Stablecoins (a kind of crypto currency supported by a traditional being, such as money or commodity), and said that it may be a role for them in the future.
“There is now a need for an emergency innovation in the field of payment, and there is no doubt, there is no doubt.”
Authorized, the bank “new generation of retail payment infrastructure to design and present” to cooperate with the authorities and industry, he said.
“This must be a priority both to replace the aging infrastructure and as part of encouraging growth in the UK,” he said, reflecting the financial service reforms specified by chancellor Rachel Reeves on Tuesday to help increase the economy.
Bay Bailey added: “There may be a role for the progress of Stablecoins, but I do not replace them commercial bank money.
“Moreover, our job is to ensure that the stablecoins claiming to be money are safe.
“Perhaps the Retail Central Bank may also be a role for the digital currency, but I continue to convince why the next natural step is to create a new form of money instead of putting digital technology in retail payments and bank accounts.”
His comments said that he threatened to receive money from the banking system only days after warning global banking giants against giving their stablecoins to give their stablecoins, and therefore left less usable for credit.
Mr. Bailey increasingly cool the idea of a digital pound in recent months and arouses doubt whether it will be officially initiated.
In his speech, Bailey warned about the ongoing impact of the global trade war and the current change in politics pointed to the “the most sudden and basic in the post -war period”.
“The shifts that we witness in the siege system in the trade system among the nations and continue to be witnessed,” he said.
“The increase in tariffs creates the risk of disintegration of the world economy and thus reducing activity,” he said.
“Recent events revealed error lines in the multilateral relationship system between nations, including the global trade system,” he added.
Authorized, the International Monetary Fund (IMF) and the Trade Organization (DTO) can work together, as well as “the global rules of the road and how to comply with the members of the existing trade war, helping to agree to cool the current trade war,” he said.
However, he emphasized that he could not “underestimate difficulties” in addressing existing trade tensions.
