Bitcoin News: It is quite common in recent years that central banks have been threatened by Bitcoin in some way. It is thought that banks fear Bitcoin and will do their best to prevent it from spreading or reaching the top of the financial ladder. However, according to Huw van Steenis, a former senior adviser to the Bank of England, this is not quite true.
“Central banks are not afraid of Bitcoin, but rather want to control it”
Huw van Steenis is currently working as a senior advisor for the CEO of Swiss banking company UBS. In a recent interview, he commented on the rising state of Bitcoin and cryptocurrencies and said that banks are not afraid of digital assets. On the contrary, he expressed that they wanted to keep them under control. Therefore, they are trying to potentially create their own centralized digital assets so that they can stay in business while giving people what they want.
To some extent, we’ve already seen examples like China’s digital yuan. With the intentions behind the existence of the country, China realized that digital assets had their advantage, as the country did everything in its power to set limits on crypto activities. It was also likely to cause many people to turn their backs on central finance entirely.
UK launches digital money
In addition, the UK announced plans for a digital currency called “BritCoin”, a digital asset that the Bank of England is dealing with.
Huw van Steenis is known for his report discussing the pros and cons of all CBDCs (central bank digital currencies) he prepared in 2019. In this report he concluded that these assets were largely related to banks holding control of financial activities within their borders.
About 95 percent of the money in most Western markets is actually not central bank money. Rather, it is money held in bank deposits in electronic format. The world is already a place where central banks play a very important role but are not dominant. So, I don’t think they’re afraid of Bitcoin, but what they want to know is there any innovation they need?