BANK OF ENGLAND: CRYPTOCURRENCIES ARE OF NO VALUE

Deputy Governor of the Central Bank of the United Kingdom, Dave Ramsden, said that cryptocurrencies are too volatile to be of value.

More than a year ago, the UK Financial Policy Committee (FPC) concluded that cryptocurrencies cannot be a means of preserving value due to their high volatility.

Ramsden noted that today the Bank’s attitude to this issue has not changed. In addition, the FPC reports that cryptocurrency is not a practical medium of exchange, as the cost of transactions is too high.

“FPC cannot be equated with cryptocurrencies to the currency because they do not meet this definition. The Committee is not worried about the impact of cryptocurrencies on financial stability – the small size of the market does not pose a threat to it,” Ramsden said.

Note that in January, senior advisor to the Bank of England, Huw van Steenis, and President of the Bank, Mark Carney, reported that crypto assets do not pass the basic financial tests.

However, a survey conducted by the Bank in the social network Twitter about the preferred currency for a Christmas gift, showed that 70% of respondents want to become owners of digital currency.