April 4 was a turbulent day for the UK crypto industry. Britain has seen Boris Johnson’s government finally warm up to the idea of cryptocurrencies with news of its non-fungible token (NFT) minting very soon. It also announced its intention to regulate stablecoins, finally signaling its acceptance as a possible payment method.
While the overall crypto environment received a massive boost, Bank of England (BoE) Governor Andrew Bailey was less than enthusiastic about digital currencies and their dangerousness as they present opportunities for scammers and criminals. In his speech at the March 4 anti-scam conference hosted by the central bank, Bailey said that miscreants and scammers who intend to deceive or dupe people usually demand their payment in cryptos.
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Bailey criticized cryptocurrencies and expressed opposition when El Salvador adopted Bitcoin as legal tender. He got the active backing of BoE Deputy Governor Jon Cunliffe, who also suggested that cryptos could threaten the entire financial system.
War and Cryptos
Bailey said the recent Russian-Ukrainian war was a pivotal event where cryptos played a significant role. Bailey questioned the stability of cryptos and how during the recent Russian-Ukrainian crisis they were used as a way to get past sanctions and survive. Bailey added that these events show that cryptos cannot be considered a reliable asset.
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Bailey’s comments came on a day when it appears the UK government is trying to tone down its stance on cryptos. Chancellor Rishi Sunak has expressed his intention to make the UK a crypto hub and recognize stablecoins as a legal form of payment.
Sunak hinted that the UK Treasury had asked Royal Mint to create NFTs and added that the latest decision is an indication that the UK financial services industry wants to stay ahead in the race for innovation.
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According to crypto data firm Chainalysis, the UK is one of the hotbeds of Europe. The Chainalysis report suggested that the UK leads in Europe for crypto transactions with US$170 billion (£123 billion) in transactions in 2021.
The UK government has so far taken a very cautious approach when it comes to crypto adoption. And now he’s realized that walking away from the question might not be a good idea. Britons should be happy to know that the UK government is working to find a middle ground where innovation and regulation can exist in the same range, and this can help the development of the crypto industry in the country. .
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