The Bank of England has warned firms that it will be taking steps to ensure cryptocurrencies do not create financial instability.
In Brief:
Bank of England Governor Andrew Bailey made the comments at TheCityUK’s annual conference.
He promised “tough love” and said some FinTechs could have “disappointed ambitions”.
“I am confident that out of it will come a robust form of innovation,” Bailey added.
What does this mean?
Cryptocurrencies are increasing in popularity and many consumers are choosing to buy, but there’s concern that people don’t fully understand the risk involved and more needs to be done to protect people. In addition, government around the world can see the potential, with the Chancellor having asked the Bank of England to look into a Central Bank Digital Currency for the UK. This research could result in new rules for FinTechs to follow.
