The deputy governor of the Bank of England, Dave Ramsden, has said that the crypto market is too volatile to be a store of value.
Among other things, the deputy governor said that the nation’s financial authorities would take a “strong approach” to cryptocurrencies and exchanges, and that the market’s volatility contributed to the decision to closely supervise market development, and offer corresponding regulation. Ramsden said,
[Cryptocurrencies] are too volatile to be a store of value, and we’ve seen that through their subsequent movement throughout last year.
The Financial Policy Committee, which also emphasized the volatility of the market, has also said that the crypto market is too small to pose a risk to financial stability.
Speaking to CNBC, the deputy governor discussed the bank’s approach to crypto,
Sharing the opinion of other crypto detractors that the asset does not function well as a currency, Ramsden said,
As a medium of exchange, the costs of [cryptocurrency] transactions are very expensive, so they don’t satisfy the basic principles of being a currency – which is why [British financial authorities] call them ‘crypto-assets.
This follows a statement by the Bank of England’s governor, Mark Carney, in which he said that the BoE is seriously considering implementing blockchain technology with the intention of preparing for the “fourth industrial revolution.” Ramsden himself said that the nation is keen on the space, saying that it was “looking at using distributed ledger technology (DLT) in the payments space.”