Cryptocurrencies such as bitcoin do not have the right structure to work as a long-term payments method, says Bank of England governor Andrew Bailey.
Speaking on a World Economic Forum panel, Bailey said that there has been great innovation in payments in recent years.
However, he continued: “Have we landed on what I would call the design, governance and arrangements for what I might call a sort of lasting digital currency? No, I don’t think we’re there yet, honestly. I don’t think cryptocurrencies as originally formulated are it.”
The problem, for Bailey, is the volatility associated with cryptocurrencies, as seen in recent weeks with bitcoin's wildly fluctuating price.
This is where central bank digital currencies have an advantage. Bailey says it is right to explore these, adding "those issues are up for grabs".