Bank of England Governor Andrew Bailey held the central banker's line against cryptocurrency proliferation at the Davos conference Monday.
At the same time, Bailey, a panelist at Davos' digital currency talk, stressed that digital innovation in payments is here to stay. It's just a matter of finding the right design and governance model for a "lasting digital currency," he said.
"I don't think we're there yet," said Bailey, adding, "Honestly, I don't think cryptocurrencies as originally formulated are it."
Bailey said the problem rests with value and volatility. People want their payments conducted over a stable medium, which the original cryptocurrency, bitcoin, certainly lacks.
Enter fiat innovation. Bailey suggested fiat systems could be made more efficient through digital means.
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"We're right still to debate stablecoin, we're right to debate central bank digital currency. Those issues, I think, are very much up for grabs," he said.