According to England, cryptocurrencies do not meet the basic financial requirements
Theeternal discussion since the creation of Bitcoin, which persiststoday and does not seem to stop soon, given that it remains a topicfor thousands of discussions on the Internet and, hundreds of forumsand conferences around the world, we refer to the crypto as money,giving rise to a series of contrasts of opinions based on economicand financial theory. Recently the Bank of England had arepresentative who did not speak pro crypto on this occasion.
Today we will talk about Huw Van Steenis, the principal advisor to the current Governor of the Bank of England (BoE), Mark Carney, alleging during an interview by Bloomberg that cryptocurrencies do not pass the fundamental financial tests.
It should be noted that Van Steenis has experience in the area, since he has worked in titans such as Schroders and Morgan Stanley. Currently, he is the head of the review of the future of the country’s finances, constantly evaluating future plans for the territory, observing the technological trends and the situation of the country.
“I’m not so worried about cryptocurrencies. The basic tests of financial services fail. They are not a great unit of exchange, they have no value and they are slower. “
Van Steenis noted that the registration of new participants in the banking system, especially technology companies, is one of the main challenges for the BoE. He also stressed that traditional banks are slow when it comes to adopting new technologies.
“What I love when meeting Fintechs is their obsession with customers. The challenge is to get clients before traditional banks can innovate, “he concluded.
It should be noted that this time he did not appeal to arguments based on theory, he went to the practice using the tests designed by the Bank to guarantee the efficiency of financial assets. As demonstrated by the BoE, Van Steenis would be right.
Thereis a reflection that, using tests of old financial assets, questionthe effectiveness of measuring cryptocurrencies in this way,continuing to consider whether it is necessary to design new tests. Iconclude with the question, “if it is not broken, should wechange it?”
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.