(BoE) governor Mark Carney called for the authorities to rather than “ban them outright” to the inaugural in Edinburgh on March 2, as reported by .
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 at London’s Regent’s University, where Carney argued that has “failed” as a currency, the central bank’s governor again emphasized his opinion that digital currencies like 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, you’d be short about £500 right now. If you’d done the same last September, you’d be ahead by £2,000. That’s quite a lottery,” Carney said.
Carney’s allegations come after the UK’s Treasury Select Committee that it will launch an inquiry into cryptocurrencies and their effects on the investors and businesses. The purpose of this inquiry is to explore the risks and benefits of digital currencies and technology.
Published at Fri, 02 Mar 2018 14:51:49 +0000
bitcoin Regulation
