Vice-Governor of the Bank of England: Stablecoins move away from cash

In one post specified Yesterday, Bank of England Deputy Governor Jon Cunliffe spoke at the OMFIF Digital Currency Institute in London on the growth of stablecoins and cryptocurrencies in general in the UK.

The Deputy Governor of the Bank of England, Jon Cunliffe

First, Cunliffe suggested the possible introduction of a central bank digital currency (CBDC) and the benefits of using stablecoins. He pointed out that such developments will lead to a further redirection of cash.

Stablecoins are electronic money that is valued 1: 1 with fiat like USD. Their value never changes and the use of blockchain allows for limitless money transfers.

And for Cunliffe, such technology could transform the way money is sent and shared with the public:

“However, there are newer technologies and innovations coming soon, such as encryption and distributed ledgers, that can further change the amount of money we use. Of these, stablecoins are perhaps the best known. Your supporters claim that these have the potential to radically reduce the cost of the cryptocurrency and increase its functionality and capabilities. “

Cunliffe says the proponents of these newer forms of money aren’t banks or financial institutions, but technology companies that want to incorporate new forms of money into services based on their other data.

He explained:

“This has received a lot of attention, including from authorities like the Bank of England.”

However, that doesn’t mean that paper money will be phased out anytime soon:

“The Bank of England is committed to keeping cash and banknotes available for as long as needed and is working with other agencies to support continued access to cash.”

The deputy governor said the need for cash won’t go away completely anytime soon:

“A lot of people still believe in cash for a variety of reasons.”

The stablecoin sector is now worth more than $ 95 billion and accounts for 4.07% of the total crypto space. USD-based coins like Tether ($ 56 billion), USD Coin ($ 14 billion), and Binance USD ($ 7.8 billion) are leading the way, with TerraUSD ($ 2 billion) and Paxos ( 1.1 billion US dollars) will soon catch up.

Veronica

According to AZCoin News