Bank of England governor Andrew Bailey gave a speech about stablecoin and CBDCs. The Bank of England has started to investigate possible application areas for CBDCs.
Andrew Bailey gave a broad speech about central bank digital currencies (CBDC) and the future of payments, in a statement Monday about stablecoins.
During his speech, Bailey did not neglect to criticize digital assets such as Bitcoin (BTC). “They don’t seem to belong to the world of payments where precision of value is so important.” Despite this criticism of Bitcoin, Bailey also stated that fixed digital currencies tied to fiat currencies could have some significant benefits in the coming days.
At one point in his speech, Bailey discussed the possible possibility that both stablecoins and CBDCs coexist and complement each other from a user experience perspective.
“Stablecoins and CBDC are intertwined assets. Depending on the design choices, either with different payment options or for wallets that provide access to CBDC, the stablecoin ecosystem can be used. They will likely play a role in helping the private and public sectors work together in the future. ”
“While not exclusive, stablecoins and CBDC are not the only way to meet changing demand and overcome difficulties in payments. We must continue to improve existing infrastructure, including the renewal and alignment of systems such as RTGS. Along with these studies, it is progressing in parallel with studies such as “New Payments Architecture”, which offers a consolidated and open retail payment system in the UK. ”
Bailey also stated in his statement that a global stablecoin could be a cross-border phenomenon and could be used across all countries in many different areas. However, he also underlined that a possible global stablecoin should comply with global banking and traditional finance standards.