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- Andrew Bailey, concerns regarding the crypto’s sustainability in the longer time-frame
- Along with crypto’s sustainability, privacy is also being a significant concern of the individuals
- Andrew is observed having an optimistic outlook regarding stablecoins and CBDC
On Monday, in the first session of the World Economic Forum Davos Agenda, Andrew Bailey, the Bank of England (BoE) governor, was featured as a speaker. Other than Andrew, four more speakers were featured in the summit’s session. However, following the summit, it was observed that the governor is optimistic regarding crypto’s sustainability in the long run. Andrew was also found favorable regarding the stablecoin and central bank digital currency (CBDC). Andrew stated that the remaining digital currencies lack the structure necessary to become a more extended time frame payment method.
Why Andrew Bailey concerns about crypto’s sustainability?
According to Andrew, the virtual currencies are not formulated initially. The volatility of these crypto tokens makes them hard to be used for payments daily. Notably, may crypto’s sustainability can be observed in the short-term, but there are questions for the longer term. On the other hand, the leading crypto-token, Bitcoin’s investors, believe in using the token for holding rather than transacting.
On the other hand, some other barriers are also available, making it hard to use cryptos for day-to-day payments. Such barriers include technological shortcomings, which clogs the network of the currency in busy times. The most significant is the transaction fees of the cryptos that are continuing to skyrocket.
Volatility and privacy of cryptos are the primary concern
In the summit, Andrew highlighted that the entire cryptosphere wants assurance for their payments to be made at a stable value. If the users are concerned regarding crypto’s sustainability, such users will hesitate to use cryptos for payments. Such demand links banks to government-issued fiat currencies, which ultimately has links to the state. On the other hand, Andrew questioned the privacy of virtual currencies. According to Andrew, a more significant concern is the privacy standard for transactions via any form of the virtual asset.
Andrew is found optimistic regarding stablecoins and CBDC
The British central bank evaluates the prospect of issuing a central bank digital currency (CBDC) as an alternative to its traditional fiat currency. According to Andrew, when it comes to the stablecoin and CBDC, they are right to debate. Such issues like the CBDC and stablecoins are very much up for grabs. Following the governor’s statement, we can conclude that he has an optimistic outlook regarding such currencies, as there are no concerns about such currency’s stability.
