March 18, 2018

Bank of England Governor Mark Carney says Bitcoin is for 'Losers.'

03 March 2018, 05:01 | Kenneth Drake

Video Governor makes Bitcoin predictions

          Governor makes Bitcoin predictions

In a speech delivered to the inaugural Scottish Economics Conference in Edinburgh, Mr Carney branded cryptocurrencies a "failure", a lottery and said they exhibit the "classic hallmarks of bubbles" that attract "fools".

"In my view, holding crypto-asset exchanges to the same rigorous standards as those that trade securities would address a major underlap in the regulatory approach", said Carney.

However in his view, "crypto-assets do not appear to pose material risks to financial stability" as their combined global market capitalisation are less than 1% of global GDP and now, no major United Kingdom high street or online retailer accepts Bitcoin as payment. Only a very small proportion of the public in the United Kingdom have invested at this time and from recent polling research we know that it's mostly young people who have done so.

"The time has come to hold the crypto-asset ecosystem to the same standards as the rest of the financial system", he added.

If the world of crypto-currencies such as Bitcoin are the Wild West, a new sheriff just swaggered into town.

Worldwide regulators on the Financial Stability Board are studying this, and the Governor said it is a topic for the G20 meeting later this month.

"Cryptocurrencies are proving poor short-term stores of value", he said.

Digital currencies threaten stability because people may invest substantial amounts - mistakenly believing they are regulated - causing further loss of faith in the financial system if they collapse.

"Crypto has the potential to be hugely disruptive to the major financial centers, which is partly behind the heavy-handed response from Mark Carney".

If Governor Carney has his way, they will be saying: I fought the law and the law won.

But he warned this might change unless action is taken.

Indonesia and Bangladesh have banned Bitcoin as a payment tool, and India's central bank has issued a number of warnings about Bitcoin risks.

Carney said cryptocurrencies are "failing" and are not actually currencies.

"They point the way to where the system has to go" by allowing peer-to-peer transactions, he said.

Speaking at Davos, May said: "Cryptocurrencies like Bitcoin, we should be looking at these very seriously, precisely because of the way that they can be used, particularly by criminals".

During 2017, HM Treasury and the Home Office published a report entitled the National risk Assessment of Money Laundering and Terrorist Financing.

William Dudley, the New York Federal Reserve president, echoed Carney's comments in remarks last month, telling reports that cryptocurrencies were experiencing a risky "speculative mania".

The Bank of England's Financial Policy Committee is now considering the risks posed to United Kingdom financial stability by the proliferation of virtual currencies.

Other News

Trending Now

Apple will launch 'the biggest iPhone ever' later this year
The brand may come out of its comfort zone for once as they plan to launch their phones with support for dual SIM cards in 2018. Like the iPhone X, the larger model will include a Face ID scanner that unlocks the device and enables payments.

Ex-NFL player Jonathan Martin detained by police over social media post
Frank Albarran of the Los Angeles Police Department's North Hollywood Division said around noon. Last evening, we learned of an Internet post that mentions Harvard-Westlake by name.

Edmonton-based Running Room drops CamelBaks over gun company ties
Two weeks ago, 17 people lost their lives in a senseless and tragic school shooting in the U.S. The co-op doesn't actually sell guns, but had been selling the Vista Outdoor-related products.

Hands on: Nokia 8 Sirocco review
For photography, the smartphone features a 5-megapixel camera with LED flash, and a 2-megapixel selfie camera with selfie flash. While the key specifications remain same as on the last year's Nokia 8 , the new Nokia 8 Sirocco comes with a refreshed design.

Is Dana White Negotiating with Former UFC Heavyweight Champion Brock Lesnar?
That brief Twitter post has people speculating on whether Lesnar will find his way back into a UFC octagon. Brock Lesnar is always prepared to resume his MMA career and return to the UFC, according to Paul Heyman .

Iran's United Nations envoy: No military solution to crisis in Yemen
The US immediately lashed out at Moscow for its veto, blaming Russian Federation for shielding a "terrorist-sponsoring" Iran .

Dan Gosling rescues point for Bournemouth at the death
The Magpies remain only two points above the relegation zone, and club legend Shearer admits that he is disappointed over the result.

British Columbia edges back from ban on increased oil shipments
At a press conference on Monday afternoon, Ralston said that Alberta's ban is a "clear violation" of the CFTA. Horgan said his government is filing a constitutional reference case on the issue.

Massive win for BJD in bypoll to influence 2019, says Naveen Patnaik
Bijepur by-poll was necessitated following the death of Congress MLA Subal Sahu in August 2017. BJP- 59896, Cong- 10153, BJD- 101435, NOTA- 1665.

Transgender wrestler Mack Beggs wins second Texas girls' state championship
Brandon Mines, agreed with several other parents at the match, maintaining that Beggs should compete with boys instead of girls. To help with the process, Beggs underwent low-level shots of testosterone. "I've worked too hard for that".