Why is Bank of England Governor Andrew Bailey dismissive of cryptocurrencies?

On Thursday, Bank of England Governor Andrew Bailey issued a statement of no confidence in cryptocurrencies at the World Economic Forum in Davos, Switzerland, saying investors must be prepared to take an eventual full loss on their investments.

"Bitcoin Has No Intrinsic Value" noted Bailey, sticking to his previous 2020 stance on the future of cryptocurrencies, or rather his so-called "crypto-assets." the

Bailey believes that everything that Bitcoin and all other kinds of cryptocurrencies have is an extrinsic value given by popularity and user consensus, and this description fits perfectly with the various fiat currencies issued by many countries in the world for many years . the

Flare CEO explains why the mainnet release of Flare has been postponed: Hugo Philion, CEO of Flare (FLR), answered some questions surrounding Flare (FLR). According to previous news, Philion posted that before the Flare main network operation starts, it will test certain aspects of its functions on the "canary network" Songbird. This means that the Flare mainnet launch has been delayed until the fourth quarter of 2020. Philion emphasized that his project "doesn't have the luxury" of being a "ghost chain" with negligible transaction value, little development activity, and a small community. According to him, the launch of Flare (FLR) was one of the most “public” in the crypto space because of the large user base involved. The risk of a quick release is too high, and blockchain entrepreneurs and regular users alike are interested in their Dapps. So the team decided to launch a more complex "real" development experiment, Songbird. It is reported that the Songbird network has its own governance and utility token SGB, which will be distributed to all participants distributed by FLR.

Philion also emphasized that his team will not be responsible for the progress of Songbird and Flare itself after the Flare mainnet launch. All plans, protocol upgrades, and other major changes will be determined by the community. Therefore, its team should not be considered a provider of cloud blockchain computing. As for the recently completed $11.3 million in strategic financing, Philion claims that the funding is enough for his engineers to develop for "many years", so the next round of financing is not at the top of Flare's agenda. Note: According to news in early June, Flare announced the completion of a new round of financing of US$11.3 million, led by Kenetic Capital. (U.Today)[2021/7/26 1:15:02]

Lawyer Jeremy Hogan: The SEC has called XRP a digital currency in the past and must explain in court why it is not supported now: News on April 6, a partner at Hogan Law Firm Jeremy Hogan (Jeremy Hogan) once tweeted In 2016, the U.S. Securities and Exchange Commission (SEC) referred to Ripple as a "digital currency company" for document research, the website said.

Now, the SEC will have to clarify to a judge how it turned into a "digital security" company. (U.today)[2021/4/6 19:51:39]

In September 2020, shortly after Bailey assumed the role of Governor of the Bank of England, during a Brookings Institution webinar, he expressed his support for the growth of technology-driven alternative payment solutions and the major wave of innovation sweeping the world of traditional currencies, But warn against innovating without any proper regulation. the

Voice | Liu Guohong: Why did the Shenzhen Stock Exchange compile the Shenzhen Securities Blockchain 50 Index at this time? Liu Guohong, director of the Finance and Modern Industry Research Institute of the China (Shenzhen) Comprehensive Development Research Institute, explained that there are two main reasons. Companies listed on the Shenzhen Stock Exchange are involved in the layout of blockchain applications and upstream and downstream industries; second, recently, high-level executives have expressed their determination to vigorously develop blockchain technology, and the market has followed suit, which can reflect the performance of blockchain-related companies. (Golden Ten) [2019/12/25]

Even highly sought-after stablecoins and central bank digital currencies (CBDCs) were not immune to Bailey's pessimistic view, as he strongly questioned the extent to which banking regulators would be swept away by this wave of decentralization.

Issues such as inter-bank interoperability, international central bank cooperation, and how much regulatory power financial institutions will have to transfer to private companies are also part of the ongoing issues. Bailey believes that the world is still far from ready for the institutionalization and legalization of CDBC, stablecoins or cryptocurrencies. the

Another factor that made Bailey hesitant was volatility and privacy concerns. According to Bailey, any creation to be given the status of an acceptable currency must be relatively stable, unlike what the crypto space offers. the

Just one year after the world's leading cryptocurrency fell more than 60 percent to $4,000 at the start of the year, it is now trading at $59,000.

Therefore, Bailey believes that the risks are great, and instead refuses to think that the crypto market is very profitable. the

On security, he worries about who is responsible for policing consumer protection and confidentiality throughout the transaction process. Fiat currency exchanges would still continue without the internet, but not for internet-based currency transactions. the

Are there regulations prohibiting the collection of data about user consumption? How to defend against hacker attacks? What are the invisible risks ahead, how can we know these risks? Bailey questioned the rapid innovation of cryptocurrencies. the

For Bailey and many other billionaires, the fear of uncertainty has dampened the excitement of innovation. If this uncertainty is likely to result in a massive global transfer of assets and undermine their finances and influence, it is only logical that they continue to relentlessly attack the mighty, broadly expanding trillion-dollar crypto market.

However, it cannot be denied that these representations, once made, will help draw the attention of all industry players to fix the many mistakes that may be encountered on the journey of the cryptocurrency revolution. As the crypto space has been evolving over the past few years, there is never the best time to regulate it. the

Currently, banks around the world are making plans to regulate Bitcoin, which is exactly what it needs.

The original text comes from zycrypto, compiled and organized by Blockchain Knight.

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