Bitcoin Has Flopped as Money, BoE Chief Says

Bitcoin Has Flopped as Money, BoE Chief Says

February 22, 2018

The BoE head has said that Bitcoin does not have the attributes of a currency as it cannot store value and offer convenience in buying things.

Bank of England (BoE) governor Mark Carney believes that Bitcoin has failed as a currency since it provides no store of value or a useful means of payment for goods. Bitcoin is not a currency that can be assessed via standard norms, according to him

Reuters cited Carney as saying during a Monday speech at Regent’s University in London:

“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, he agreed that blockchain, the technology behind most existing cryptocurrencies, can be useful for monitoring financial transactions in a decentralized manner.

The head of the UK central bank made these remarks during a Q&A session after delivering a speech on leadership, highlighting the need of humility and empathy as opposed to being driven only by profit. This would go against the speculative nature of cryptocurrency trading though he did not specifically refer to that.

The governor also said that in order to guarantee a smooth Brexit by March 2019, UK regulators plan to provide financial institutions with “the benefit of the doubt, beyond the last minute.”

He stated that both British and European partied were interested in a transitional deal by the specified deadline.

“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,” he added.

Last week, Kay Swinburne, an MEP and coordinator of the MiFID II legislation, said that London’s financial sector had to focus on blockchain technology in order to remain competitive after Brexit.

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