• September 29, 2023


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BoE Deputy Governor Recalls Risks and Benefits of Cryptocurrencies

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Sarah Breeden, the incoming Deputy Governor of the Bank of England, has discussed the potential for digital pound becoming an anchor for digital money in a recent speech given in parliament.

She has stated that while the technology associated with cryptocurrencies does have its advantages, the collapse of Terra, Silvergate and Signature banks is a testament to the fact that this unsecured asset class currently does not pose any major risks to financial stability but could do so in the future if stablecoins are utilized for payments by TradFi.

Making clear that this is a global matter, Breeden has encouraged regulators around the world to come up with comprehensive and consistent approaches for regulation and supervision.

Furthermore, she has noted that digital assets should be treated more as financial activities than gambling, and the approval of CBDC, while taking privacy concerns into account, has the capacity to become “an anchor for all money in the digital world.”