Bank of England governor Mark Carney, in his speech to the Scottish Economic Conference in Edinburgh on March 2, called for authorities to regulate rather than “ban” the cryptocurrency market, the Financial Times reported. According to Carney, cryptocurrencies are not currently under threat of “financial stability”. Financial stability threat can only be talked about after more consumer involvement. Carney also thinks it’s time to incorporate the cryptocurrency ecosystem into the rest of the financial system, which applies the same regulatory approach and the same “rigorous standards.” At the same time, he believes it will help him adapt the technology to wider public use.
Carney, in his last speech at London’s Regent University, argued that Bitcoin “failed” as a currency.. The President believes that digital currencies like Bitcoin should actually be seen as assets.
Carney noted the enormous volatility of these “assets”. In this context, he said that the prices of cryptocurrencies are based on “belief in terms of future supply and demand”.. And he stressed that it “exhibits the classic characteristics of bubbles” due to its lack of “internal value” or external support.
Boe president made a sort of lottery assessment for the cryptocurrency market
For next year If you had taken out a student loan with £1000 worth of Bitcoin last December to cover your living expenses, you would have now repaid around £500.. If you had done the same thing last September, your refund would have been around £2000.
Carney’s allegations came after the UK Treasury Selection Committee announced it would launch an investigation into cryptocurrencies, their effects on UK investors and businesses.. The purpose of this research is to explore the risks and benefits of cryptocurrencies and Blockchain technology.