Cryptos have none of the functions of money, says BoE executive

The debate over the security and reliability of cryptos continues within major government institutions. Many executives argue that CBDCs are safer for consumers than cryptos. The fintech head of the Bank of England (BoE) is one of them. Tom Mutton exposed the downsides of cryptos and touted the benefits of CBDCs at a recent event.

CBDCs would offer better privacy protection than cryptos!

While the BoE advocates equality with real money for the regulation of stablecoins, its head of fintech criticizes cryptos. During the Crypto and Digital Asset Summit, Tom Mutton denounced the anonymity of the new asset class. He said that the latter constitutes ” a public policy issue “. He added that it is ” something that should not be allowed to continue “. Tom Mutton also argued that cryptos do not perform any of the functions of money.

Mutton pointed out that privacy and anonymity are concepts at odds with the BoE’s proposed CBDC. He said the UK’s goal with a digital book can only be achieved if it has ” the highest standards of confidentiality “. He has explained that the BoE’s CBDC was never designed to offer anonymity. “Privacy and anonymity are used as synonyms when they shouldn’t be“, supported the fintech manager.

Mutton suggested that CBDCs have several privacy benefits. Moreover, according to him, private sector digital currency is no more private than a digital pound would be. “All electronic payments create a data footprintMutton explained. The fintech manager clarified: “The question is who does this data go to and what are the terms of use?“.

In February, Jon Cunliffe, Deputy Governor of the BoE, gave his thoughts on the issuance of a digital book. To this end, he indicated that the Bank of England is not yet able to issue a CBDC. He precised : “We did not want a system in which there were two forms of Bank of England money in circulation, paid and unpaid“.

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