Cryptocurrency market update: BoE advisor, “cryptocurrencies… fail the basic tests of financial services”

One of the senior advisers to the Bank of England, Huw van Steenis who is also in charge of the review of the International Monetary Fund (IMF) 3.5% growth decline says that future of finance at the does not include digital assets. Steenis has worked at Morgan Stanely where he carved his career. He has an excellent track record when it comes to issues of finance. Currently, he heads the “future of finance” in the United Kingdom which he says he intends to turn into a “vibrant financial center.”

Steenis recently told Bloomberg that he is prioritizing both payment systems and digital transformation. He added that the main challenge is how the incumbent banks will align themselves and adapt to the threat that is coming from fintech firms. He said that while banks spend 25% of their budgets on digital transformation, this amount must go up. While responding to a question of whether there is going to be a significant threat coming from fintech as well cryptos on the stability of the financial systems, Steenis said:

“I’m not so worried about cryptocurrencies… They fail the basic tests of financial services. They’re not a great unit of exchange, they don’t hold value, and they’re slower… that’s at the moment, but they’re a threat.”

He went ahead to say that there is a slight challenge when it comes to regulating the new entrants into the financial system. He, however, brushed off on inquiries of whether Bitcoin and the traditional financial system undergo the same issues like volatility.

“There are risks from all these new challenges coming through but cryptocurrencies aren’t high on my worry list.”