Bank of England: “Private cryptocurrencies may be useful in the future”

The Bank of England does not rule out the possibility that private cryptocurrencies mayplay an important role in the futureof money. In addition, the British Central Bank is still studying the concept of issuing a digital pound.

During the webinar this week,Bank of England analysts working on state cryptocurrency said there is a real possibility that private companies can play an important role in issuing and distributing money.

As analyst Ben Dyson noted, thoughEarlier, the Bank of England stated that Bitcoin and other cryptocurrencies do not meet the necessary money criteria, “this does not mean that it is impossible to improve the technology and create the best product that has the characteristics of money.”

“Over the past year we have seen offers fromlarge technology companies, for example, to create payment systems and crypto assets that could function like money with sustainable purchasing power, ”he said.

Although this may introduce new risks tomonetary system, according to Dyson, private currencies can work together with any future initiative of the state cryptocurrency, if they have real use.

“If these proposals are realneeds - for example, some weakness in the existing payment system or a certain category of users that are not serviced by existing payment systems - the public sector can play a role in solving these problems, or simply leave their solution to the private sector, ”said Dyson.

Bank of England Opinion on Private Cryptocurrenciesdiffers from the views of other Central Banks, which spoke negatively about initiatives to release stablecoins such as Libra. However, as the Bank of England analysts emphasized, any future digital currency, including the state one, must comply with strict standards of data confidentiality.

“The key moment for the Bank of England isto make sure that if we are going to issue a state cryptocurrency, this initiative will respect the rights of people to privacy, ”said Tom Mutton, director of fintech for the Bank of England.

UK Central Bank issued last fallThe final version of the requirements and principles that must be observed by the Libra project in order to work in the country. In addition, in early March, the Bank of England's deputy financial stability manager warned that the development of the cryptocurrency economy could weaken and even eliminate the issuance of bank loans.

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