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By CCN.com: Traditional banks do not care about cryptography because it has no value and fails the basic tests of financial services. This is what Huw van Steenis, Senior Adviser to Bank of England Governor Mark Carney, says.
According to Van Steenis, traditional banks are still trying to resist competition from new fintech platforms, but there is no shortage of sleep in the face of crypto-currencies such as bitcoin.
Van Steenis: The crypto market is a small potato
"I'm not so worried about currencies," Van Steenis told Bloomberg (video below). "They fail the basic tests of financial services."
This is not an excellent trading unit. They do not hold value, and they are slower.
Van Steenis made the announcement in Davos, Switzerland, where the 2019 World Economic Forum will be held this week.
"Customers want something cheaper, better, faster [from banks]Huw van Steenis, Senior Advisor to the Governor of the Bank of England, https://t.co/OaGEtsrIUS pic.twitter.com/yDtNJA1YSe
– Bloomberg TV (@BloombergTV) January 21, 2019
Van Steenis' cavalier attitude towards Bitcoin reflects the anti-encryption sentiments of financial badyst Gary Shilling. As reported by CCN, Shilling's investment name in New Jersey bypbades bitcoins because it is "a kind of big ponzi project".
Shilling also says that bitcoin is a failing currency because it is neither a store of value nor a medium of exchange.
Gary Shilling, Financial Analyst, Bitcoin: It's a "Great Ponzi Scheme" #cryptocurrency #altcoin https://t.co/FFrcO0iOQC
– Crypto News (@PaveIt_) November 16, 2018
When asked if bitcoin had the power to stay, Huw van Steenis acknowledged that traditional financial institutions are always vigilant about maintaining their competitive edge and market share. But for now, he does not believe that bitcoin or any other crypto is a viable challenge to big bank dominance.
"Traditional banks are trying to counter threats from these new technology platforms," said Van Steenis. "But crypto-currencies are not at the top of my mind."
Van Steenis says his priority is to make the UK a "dynamic hub" for financial technology over the next five to ten years.
BoE Boss: Crypto is not a threat to the global economy
In the meantime, van Steenis boss – Bank of England Governor Mark Carney – said in March 2018 that the cryptography industry was not threatening the stability of the global economy.
Carney – who is also chairman of the Financial Stability Board – made the statement in a letter to the G20 Finance Ministers and Central Bank Governors.
Cryptos does not run the risk of global financial stability: FSB's Carney tells the G20 https://t.co/C3Zg9lxC4V
– CCN.com (@CryptoCoinsNews) March 19, 2018
Carney also noted that innovative technologies underlying crypto-currencies such as Bitcoin could strengthen the global economy if they were implemented properly.
The initial badessment of the FSB is that cryptographic badets do not pose a risk to global financial stability at this stage.
This is partly because they are small compared to the financial system. Even at their recent peak, their combined value in the global market accounted for less than 1% of global GDP.
The technologies that underpin them can improve the efficiency and inclusivity of the financial system and the economy.
A British MP: The UK should take a lead
Although Van Steenis has overwhelmingly rejected crypto as a viable monetary alternative, some UK lawmakers are asking not to share it.
As CCN reports, Eddie Hughes – a member of the UK Parliament – wants UK residents to pay their local taxes and utility bills using bitcoins.
In December 2018, Hughes stated that it was time for other MPs to become familiar with crypto because it does not go away any time soon.
A member of the UK Parliament wants you to pay your taxes with Bitcoin https://t.co/TeDTtaUBDG
– CCN.com (@CryptoCoinsNews) December 10, 2018
"There is a lot of talk about it everywhere you go in the UK, and as MPs we have a duty to understand it," said Hughes.
In addition, Eddie Hughes urges the United Kingdom to "plant a flag" and become a world leader in crypto-industry booming.
You are either ahead of the curve or late. We are at a crossroads and we are on the threshold of determining our future – a future in which to take the lead in this area could be very beneficial.
Bloomberg / YouTube Featured Image
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