Bank of England’s (BoE) Chief Economist, Andrew Haldane, has shared a surprising opinion in a talk he delivered at a UK College.
Haldane, whilst responding to questions, stated that he believed Bitcoin (BTC) could replace cash in the near future.
A witness, who was present at the talk shared Haldane’s answer on Reddit.
“Mr Haldane said it (Bitcoin) could replace cash, he even joked about us likely having Bitcoin in our wallets. He said he didn’t think it’d replace cash tomorrow, but he was quite open to the idea 20 or 30 years down the line. He was also quite familiar with Cryptocurrencies and joked that there were now thousands of them.”
Will Cryptocurrencies Ever Replace Cash?
Haldane strongly thinks it will replace fiat currency, and has back peddled on his previous thoughts of Bitcoin, taking a sudden shift from a once bearish attitude on the crypto currency.
In March 2018, Haldane warned investors against investing in Cryptocurrencies, after the price of Bitcoin saw a sharp and continuous drop at the time. Haldane has also previously stated that Bitcoin was not a threat to the existing banking system.
What Has Changed The BoE’s Chief Economist’s Opinion?
The sudden shift in Haldane’s views can be largely linked to the vigorous recovery of Bitcoin, making sceptics like Haldane realise its long-term potential.
Bitcoin between 2018-2019 took an 85 percent crash followed by a 135 percent recovery. Since January this year alone, the price of BTC has doubled in price, hitting new yearly highs. Currently at the time of writing the price of BTC is sitting at $8,863.46 +10.1%.
Haldane is not the only sceptic who has swayed their thoughts on Bitcoin. The Australian Financial Review reported on March 6, 2019, that a renowned economic historian, Niall Ferguson, turned much like Haldane from a Bitcoin agnostic to a Bitcoin believer, stating,
“I was very wrong. Wrong to think there was no use for a form of currency based on Blockchain technology.”
We need to take this opinion very seriously, being an official representative of the Bank of England he understands traditional fiat currency, central banks, the banking system and it is undeniable that his confidence in digital currencies becoming the way of the future is inevitable.