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Brexit

Bank of England 's Bailey says stablecoins do not meet grade for broad use

FILE PHOTO: 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 (Reuters) - Bank of England Governor Andrew Bailey said he did not think that privately operated digital currencies known as stablecoins were suitable for widespread use or could be trusted as a safe store of value like many traditional currencies.

“The bar is set very high for private stablecoins, and I don’t think they have met that bar,” Bailey told a European Central Bank panel discussion, echoing previous scepticism about projects such as Facebook’s Libra.

“It may be that the answer ... is actually a central bank digital currency, where you would get that guarantee and certainty of value,” he added.

Reporting by David Milliken; editing by Stephen Addison

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