Bank of England does not see cryptocurrencies as a serious threat to the country

Bank of England does not see cryptocurrencies as a serious threat to the country

Cryptocurrencies do not yet pose a serious risk to the UK's financial stability, but as their impact grows, a tighter regulatory framework will be needed. The Bank of England said in a report.

"Regulation needs to evolve quickly enough, both domestically and globally, to address the risks they [cryptocurrencies] could pose in the future," experts said.

Regulator officials said they intend to pay "close attention" to developments, including "the relationship between cryptocurrencies and the UK financial system. In this way, the central bank intends to ensure resilience to potential systemic risks.

"The FPC believes that financial institutions should exercise caution and prudence in relation to any acceptance of these assets," the document said.

Earlier, Bank of England governor Andrew Bailey said cryptocurrencies have no intrinsic value, so investing in them involves serious risk.

In June, he rejected bitcoin's resemblance to money, but acknowledged that staplecoins could occupy a niche in the financial system.

Recall that in late September, the Bank of England and Her Majesty's Treasury announced participants in forums to explore technological and other aspects of CBDC. They include representatives from Visa, Mastercard, PayPal, Google and other companies.

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