A senior adviser to the Bank of England has stated that cryptocurrencies do not pass basic financial tests and are not high on his list of concerns. In an interview with Bloomberg, he added that he was “not so worried about cryptocurrencies”.
Central Bank Adviser Sees No Threat in Cryptocurrencies
Huw van Steenis, a former Morgan Stanley manager, is currently working on a review of the future of finance and fintech for the Bank of England. When he showed a somewhat limited understanding of what Bitcoin and cryptocurrencies can do, he added, “These are not big swap units, they hold no value, and they are slower.” For him, cryptocurrencies are not threats to banks. He recognized, however, that they could become a threat as soon as certain factors are overcome.
“I’m less worried about cryptocurrencies… They fail at the basic tests of financial services. They are not a big exchange unit, they have no value and they are slower …. that is right now, and they are not a threat. ”
Cryptos vs Archaic Banking
Anyone who has made an international transfer through a bank, and then compared one using a cryptocurrency that only takes seconds, and both methods, will know what we are talking about here. Van Steenis acknowledged that bank customers want something cheaper, faster and better; but the also understand that banks are investing in technology to make this possible. However, they seem miserably behind the times when compared to the advances made in the past one or two years in blockchain technology and crypto platforms. Most banks still have high fees and more than 24 hours of cross-border transaction waiting, which makes them extremely archaic.
“There are risks from all these new challenges, but cryptocurrencies are not high on my worry list.”
He is more interested in keeping up with fintech innovation and emphasizes that the focus will be on whether new fintechs can finish their platforms and customers on board before established companies manage to adapt.
Also published on Medium.