Bank of England Governor Andrew Bailey poses for a photograph on the first day of his new role at the Central Bank in London, Britain March 16, 2020.

BoE's Bailey promises 'tough love' for fintech firms

submited by

Style Pass

2021-06-15 14:30:11

Bank of England Governor Andrew Bailey poses for a photograph on the first day of his new role at the Central Bank in London, Britain March 16, 2020. Tolga Akmen/Pool via REUTERS

LONDON, June 15 (Reuters) - Bank of England Governor Andrew Bailey promised "tough love" for some financial technology firms and "disappointed ambitions" for others, as the central bank seeks to ensure that innovation in cryptocurrencies does not create financial instability.

Bailey, speaking to the annual conference of financial trade body TheCityUK, said the BoE did not oppose competition, but did want financial innovation to serve the wider public interest.

"There will inevitably be elements of tough love in such a process, and some disappointed ambitions, but I am confident that out of it will come a robust form of innovation," Bailey said.

British finance minister Rishi Sunak asked the BoE in April to look at the case for establishing its own central bank digital currency, which he dubbed 'Britcoin', to respond to the potential challenge from cryptocurrencies such as bitcoin.