Bank of England thinks cryptos form a new financial order

by in Cryptocurrency News

England

Bank of England economist Andy Haldane believes digital currencies are revolutionizing. Their massive introduction will lead to the formation of a "new financial order."

The expert outlined his position during a speech at the tenth-anniversary conference of the Central Bank of Great Britain.

Haldane stressed: "The traditional banking model is collapsing. The increase in the use of digital currency, if not eliminates, then at least mitigates the technological backwardness of countries."

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The economist pointed to the main advantage of cryptocurrencies - it is the reduction in transaction costs and the free movement of funds around the world. According to his forecasts, it is no longer possible to stop the process of introducing digital currencies.

Central banks themselves provoke a massive transition of investors to digital assets, lowering interest rates, and reducing the profitability of traditional instruments, the economist concluded.

Note that the management of the Bank of England is still extremely skeptical about Bitcoin and other decentralized cryptocurrencies. Recently, the head of the British Central Bank, Andrew Bailey, said that BTC is a very volatile instrument that can both skyrocket and collapse in price at any time.