Bitcoin A “Failed” Currency – BoE governor Mark Carney

News, Regulation | February 20, 2018 By:

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

Responding to questions from students at London’s Regent’s University, Carney said bitcoin 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.

But the BOE governor believes blockchain, the underlying technology of bitcoin and other cryptocurrencies, could improve the way transactions are conducted in a ‎decentralized way, which conceivably eliminates the hassle of exchanging ‎currencies and clearing the money through banks.

In December 2017, it was reported that the BoE has set up a research unit to investigate the possibility of issuing its own cryptocurrency to allow UK citizens to keep their money with the central bank itself, cutting out the need for a retail bank. In January, however, the central bank denied the report, saying that creating its own cryptocurrency would lead to commercial banks running out of cash to lend.