British Bank Governor: Bitcoin Loses Momentum As Payment Method

Governor of Bank England (BOE), Andrew Bailey (photo: x @govBailey)

JAKARTA - The Governor of Bank Inggris (BOE), Andrew Bailey, revealed that Bitcoin (BTC) experienced a decrease in momentum as an inefficient payment method. This statement was made at a session of the UK Parliamentary Finance Committee on January 10.

Bailey and BOE Deputy Governor Sarah Breeden appeared before the committee to discuss BOE's latest Financial Stability Report.

Bailey reiterated that cryptocurrencies without support have no intrinsic value. "In my own opinion, Bitcoin does not develop as a core financial service. For example, using Bitcoin as a payment method is quite inefficient," Bailey said.

Breeden added that the lack of a regulatory framework hinders the advancement of cryptocurrencies in traditional finance, even though the situation is changing.

Bailey continued that stablecoin poses a challenge to regulators and is not stable enough. He called it "too opaque."

The central bank digital currency (CBDC) or so-called "Britcoin" in the meeting was also briefly discussed. Breeden said that the debate was still continuing on privacy issues and programmability.

The December report, which focuses on meetings, contains little information about digital currencies. Authorities are considering policy options for stablecoins and CBDCs, the report said.

"This includes how to reduce the risk of financial stability that arises from the potential withdrawal of most deposits from the banking system in stressful situations," he said.

In addition, the report reviews most of the findings and recommendations. "The FSB will conduct a review of its recommendation implementation until the end of 2025," it said. Regulators in the UK have been working on stablecoin rules throughout 2023. Rules regarding stablecoins are expected to take effect in the UK by 2025.