Bailey considers volatility to be a problem that comes up when talking about payments with cryptocurrencies. According to Hikmet Ersek, CEO of Western Union, each cryptocurrency has a different use case.
Innovation in digital payments will undoubtedly remain a response to a global need. However, the Governor of the Bank of England, Andrew Bailey, said that innovation in digital payments does not apply in the case of cryptocurrencies.
Bailey recently commented that there is currently no cryptocurrency model or design that can last over time. He stated that “there have been great technological innovations in payment systems, but there are still important barriers to address.”
The representative of the English financial institution added that cryptocurrencies do not have a design that allows them to be long-lasting. With this, he alluded to the volatility of their price on the market. He considers that “cryptocurrencies are not durable, since people need to pay with currencies that maintain a stable value.”
On other occasions, Bailey has stated his stance against cryptocurrencies, especially Bitcoin. The current governor of the Bank of England has claimed that Bitcoin has no relationship with money.
According to Bailey, “there is no guarantee of the value of Bitcoin”, and those who own Bitcoin should prepare to lose. Shortly after assuming his current position, he said that “if you want to buy Bitcoin, prepare to lose all your money. It is okay to want to buy it as far as I can understand, [that cryptocurrency] has no intrinsic value.”
“Inclusive Cryptocurrencies Will Succeed,” according to the President and CEO of Western Union
Glenn Hutchins, co-founder of investment firm Silver Lake Partners, believes that tokens that focus on different aspects will shape the future. Given this scenario, he said that it will be possible to see greater use of Bitcoin, and even stablecoins, as a store of value.
The businessman compared the value of cryptocurrencies with that of a movie since he believes that each screening and the recommendation of the public produce dividends. In his opinion, “cryptocurrencies will increase in value as the number of their use cases grows on the networks where they operate.”
Hikmet Ersek, President and CEO of Western Union, believes that the future success of cryptocurrencies will depend on the great need for an inclusive financial system. He explained that “there are around 8,000 million people in the world who want to be part of a global economy.” He added that “we should mention inclusivity rather than exclusivity when talking about digital currencies, so inclusive cryptocurrencies will succeed.”
The executive stated that each cryptocurrency may have a different use case, which people should consider. He even explained that each digital currency proposal does not address the same problems and needs. Therefore, he thinks that diversity will prevail in the long term.
The World Economic Forum (WEF) is a Geneva-based non-profit foundation. They have already placed the topic of digital currencies on their agenda for some time. From this organization, projects that address these innovations for the financial sector have emerged. Among those projects are the Fourth Industrial Revolution Research Centers, which include the exploration of blockchain technology.
The use of the technology that gave rise to Bitcoin has helped financial institutions develop solutions to optimize their services. Despite opinions against the pioneering cryptocurrency, it has proven time after time that it can recover from any crisis. That particular ability can allow it to remain on the market for a long time.
By Willmen Blanco
