The governor of the Bank of England, Andrew Bailey, has argued that stablecoins cannot function as money because they have no assured value. Bailey made the remarks during a virtual conference hosted by the Davos-based World Economic Forum, where he discussed the challenges and opportunities associated with the use of stablecoins and other digital currencies.

Bailey suggested that stablecoins, which are cryptocurrencies that are pegged to the value of a fiat currency or other asset, may not be a reliable store of value or medium of exchange. He noted that stablecoins do not have the backing of a central bank or other institution, and their value can fluctuate based on market conditions and other factors.

As the use of stablecoins and other digital currencies continues to grow, it will be important for regulators and policymakers to carefully evaluate the risks and benefits of these technologies, and to develop appropriate frameworks and regulations to ensure their safe and responsible use.

(by Terence Zimwara)