Using bitcoin as a payment method

 

Using bitcoin as a payment method

During a meeting of the Treasury Committee in the UK Parliament

the President of the Bank of England (BoE), Andrew Bailey

expressed the view that the use of bitcoin as a means of

payment was highly ineffective.

During the hearing on January 10

Bailey and the Deputy Governor of the Bank of England expressed

their belief that bitcoin did not meet basic financial service requirements. 

Bailey explained that the use of bitcoin as a payment method is highly ineffective.

Sarah Breeden, chair of the Treasury Committee

discusses the Bank of England's latest financial stability report.

Breeden noted that the absence of a regulatory framework impeded

 the development of digital assets in the traditional finance sector.

However

Notes that the situation is changing as a result of the adoption of 

the Financial Services and Markets Act 2023, approved last year

which ultimately aims to fully integrate digital assets

 into the UK's financial services regulatory system.

Regarding digital assets, Bailey also emphasized that stablecoins

were a challenge to regulators and were not stable enough.

He described it as "vague." 

The Bank of England's views focus on decentralized technology 

and digital assets in general, focusing on benefits rather than 

on current market value or trend.

Currencies are likely to continue memecoins and small, low-interest codes, but it seems that they will not become legitimate payment methods in the public market.

This is particularly important in relation to Central Bank digital

 currencies (CBDCs), which have been another topic on

the Parliamentary Committee's agenda.

With regard to the idea of the central bank's digital currency

"British currency", Breeden noted that discussions were continuing on

 privacy and programmability issues.

While Bailey explained that the main obstacle would be "inefficiency"

 in some block chains as a payment system equivalent to or trying to

 meet the same function as national paper currencies.

However

there are some block chains that may be able to process the volume of 

transactions required to implement such a system on a large scale

including small transactions.

For example, this capability is provided in the BSV (Bitcoin SV) 

blockchain, as noted by Calvin, founder of Ayre Ventures.

BSV

 is the only generic mass chain that offers unlimited range

 and has a unique ability to process large transaction volume at low cost.

Thus

this type of block chain can be able to meet the requirements of

 Central Bank cryptocurrencies (CBDCs) in relation to retail procurement

 and its widespread use, implemented in accordance with the laws

 and regulations in force in the country.