Mark Carney: Bitcoin A ‘Failed’ Currency

Photo by Bank of England/Flickr

On Monday, Mark Carney, the Governor of the Bank of England, said that bitcoin has was a failure as a currency that is measured by standard benchmarks and is neither a useful way to buy things nor a store of value.

At London’s Regent’s University, Carney informed the students: “It has pretty much failed thus far on … the traditional aspects of money. It is not a store of value because it is all over the map. Nobody uses it as a medium of exchange.”

However, as a response to a question, he added that the underlying technology of the cryptocurrency may still be proven to be useful as a way to verify the financial transactions in a way that is decentralised.

The governor of the central bank also said that to make the departure of Britain from the European Union in March 2019 as smooth as possible, regulators in Britain intended to provide the financial institutions with “the benefit of the doubt, beyond the last minute.”

The movements of Sterling were largely driven by financial speculation regarding Brexit, and he said that European and British officials were working hard in order to secure a transitional deal before the end of next month.

He stated: “Everyone is very focused on that. It obviously won’t be a hard, legally binding agreement. But I can tell you that if 28 leaders agree to something that has legal text associated with it, which will be part of the separation agreement, that should be good enough,”

Carney made the said comments during a question and answered session following his speech on leadership, in which he emphasised the importance of empathy and humility and said that financiers should not be purely motivated by profit.