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Cryptocurrency Is Not a Store of Value says UK Central Bank Deputy Governor


Dave Ramsden, deputy governor of the United Kingdom’s central bank in an interview with CNBC recently commented that cryptocurrencies are too volatile asset to be a store of value.

He further went on to say, that due to the small size of the market, they are not a threat to financial stability. In January, another BOE employee Huw van Steenis, senior adviser to BOE Governor Mark Carney asserted that cryptocurrencies will even fail the basic financial tests.

Romanian Central Bank official also recently stated that cryptocurrencies cannot replace currency issued by central banks. Daniel Daianu, a member of the Romanian National Bank (BNR)’s Administration Council, emphasized the necessity to be aware of the difference between institutions and their roles.

Romania released a draft Emergency Ordinance that regulates the issuance of electronic money (e-money) last July. The draft  described electronic money as the value stored electronically, including magnetic, representing a claim on the issuer issued on receipt of funds for the purpose of performing payment transactions and which is accepted by a person other than the issuer of electronic money.”

A recent report from the World Economic Forum (WEF) revealed that at least 40 central banks globally are conducting research projects and pilots with blockchain technology that aim to address such issues as financial inclusion, payments efficiency, and cybersecurity.

However, as per a BOE Twitter survey, the preferred form of currency to receive Christmas gifts was digital currency.

As CoinMarketFeed recently reported, Corporate Traveller, the largest travel management firm in the U.K., has started accepting Bitcoin payments. The firm has also partnered with BitPay for making crypto payments possible.

The firm is unperturbed with crypto price volatility as Bitcoins will be converted directly to British Pounds. Further, BitPay charges a commission to convert funds which is cheaper than credit card processing.

BitPay recently reported that it saw over $1 billion in transactions last year. Per the January press release, the firm set a new record in terms of transaction fee revenue, has expanded its services to major customers like Dish Networks, HackerOne, and the State of Ohio.

Several firms and organizations in the tourism and travel industries have begun accepting cryptocurrencies, citing customer demand. In late March, Five-star Dolder hotel and Autohaus Kessel car dealer announced that they will start accepting Bitcoin and Ether payments from May. On Jan. 30, BitPay entered into a partnership with Wikimedia Foundation to broaden the number of cryptocurrencies that are acceptable by donation.