BoE Governor Mark Carney: Crypto Ecosystem Should Be Held To Same Standards

BoE Governor Mark Carney: Crypto Ecosystem Should Be Held To Same Standards
BoE governor Mark Carney says the time has come to incorporate the crypto ecosystem into the rest of the financial system and hold both to the same standards.

Bank of England (BoE) governor Mark Carney called for the authorities to regulate cryptocurrencies rather than ban them outright in his speech to the inaugural Scottish Economics Conference in Edinburgh on March 2, as reported by Financial Times.

According to Carney, cryptocurrencies do not threaten financial stability at the moment, but they could after more consumers get involved. Carney believes that it is time to incorporate the cryptocurrency ecosystem into the rest of the financial system, applying to it the same regulatory approach and the same rigorous standards.

Carney believes that this would not only minimize money-laundering and consumer risks, but also help adapt the technology for wider public use.

Following his recent speech at Londons Regent's University, where Carney argued that Bitcoin has failed as a currency, the central banks governor again emphasized his opinion that digital currencies like Bitcoin should actually be regarded as assets.

Carney pointed out the tremendous volatility of these assets, stressing that cryptocurrencies have exhibited classic hallmarks of bubbles since their prices are based on beliefs regarding their future supply and demand, and do not have intrinsic value or external backing.

BoE governor expressed his view of the cryptocurrency market as quite a lottery.

Consider that if you had taken out a ?1,000 student loan in Bitcoin in last December to pay your sterling living costs for next year, youd be short about ?500 right now. If youd done the same last September, youd be ahead by ?2,000. Thats quite a lottery, Carney said.

Carneys allegations come after the UKs Treasury Select Committee announced that it will launch an inquiry into cryptocurrencies and their effects on the UK investors and businesses. The purpose of this inquiry is to explore the risks and benefits of digital currencies and Blockchain technology.

05.03.2018 / 09:40 15
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