While there are many advantages of cryptocurrency, a major disadvantage is its use in crimes. The Bank of England’s Governor stated that the crypto industry, although promoting innovation, creates opportunities for scammers.
According to Bloomberg, Andrew Bailey, Governor of the Bank of England, is concerned that cryptocurrency creates chances for scammers and criminals.
“You only have to ask the question: What do people committing ransom attacks usually demand payment in? The answer is crypto.” Bailey said at the Bank of England’s “Stop Scams” seminar.
While cryptocurrencies are creative in the wider world of financial services, they also provide “potential for the downright criminal,” according to him. This isn’t the first time Bailey has expressed concern about the dangers of cryptocurrency.
Andrew Bailey’s stance on crypto
Bailey took aim at one of the year’s major Bitcoin stories: El Salvador’s adoption of the main cryptocurrency in November 2021.
“I am concerned that a country might pick Bitcoin as its national currency,” remarked the Governor. “What would worry most of all is, do the residents of El Salvador comprehend the nature and volatility of the currency they have?”
One month later, the Bank of England’s deputy governor Jon Cunliffe claimed the crypto business might challenge the financial system as it exists now.
“The point at which one should be concerned,” Cunliffe added, “is when it becomes integrated into the financial system and a large price correction might actually harm other markets and established financial market actors.”
Bailey is now taking it a step further, questioning not only the stability issues associated with cryptocurrencies but also their possible role in supporting sanctions evasion. Indeed, ransom attacks, which Bailey specifically mentioned, have already netted Russia-affiliated perpetrators millions of money.
“Some crypto fans claim they shouldn’t be affected by Russian sanctions because that’s not their world. Sorry, but this is your world. He went on to say, “We’re all in the same world.”
