According to CoinDesk, Sarah Breeden, the incoming deputy governor of financial stability at the Bank of England, recently discussed the risks and benefits of cryptocurrencies during a hearing of Parliament's Treasury Committee. Breeden, who will assume her new role on November 1, stated that cryptocurrencies do not currently pose a significant risk to financial stability, but could do so in the future if they become more connected to the wider financial world, particularly if stablecoins are used for payments.

Breeden also expressed her belief that unbacked cryptocurrencies have no intrinsic value and that investors should be prepared to lose all of their money. She cited the collapse of Terra's UST stablecoin and the failures of U.S. banks Silvergate and Signature as examples of the risks posed by cryptocurrencies. Despite these risks, Breeden acknowledged the potential benefits of the technology underlying cryptocurrencies, stating that it could bring benefits to the financial system.

In her new role, Breeden will help guide the UK's approach to regulating cryptocurrencies and play a role in the decision on whether to issue a central bank digital currency (CBDC). She expressed support for a CBDC, stating that it 'would be the anchor for all money in the digital world.' However, she also noted that ensuring privacy with a digital pound is a concern and that regulators will need to demonstrate that they are adhering to the privacy boundaries set by Parliament.