The Head of the Bank of England, Mark Carney, recently criticised bitcoin during the conference. He believes that it’s time to bring the crypto-active ecosystem into compliance with the standards that the entire financial system is subject to, and put an end to the “anarchy” of the cryptocurrency.
In his speech, he noted the “extreme volatility” of the cryptocurrency, which indicates the absence of any internal value or external support. According to Carney estimates, in 2017 the average volatility of the ten coins is more than 25 times higher than that of US stocks.
He also noted the potentially useful properties of blockchain technology, but believes that the digital currencies themselves have failed to win the status of real money. He rejected the possibility that in the near future the Bank of England will start creating its own digital currency.
“It would be better to regulate the elements of the ecosystem of cryptocurrency assets to combat illegal activities, protect the integrity of the market and the security and health of the financial system. Being inside the financial system gives huge privileges, but also requires greater responsibility, “Carney emphasized.
Earlier this year, the British Parliament began to explore the benefits and risks of cryptocurrency.
Before heading the Bank of England, Mark Carney worked in a similar position at the Bank of Canada. His latest statements were quickly criticized by the bitcoin community. Very well-known Saipedin Ammus reminded the official that for 10 years of his work in the Banks of Canada and England, the Canadian dollar depreciated 40%, the British pound – 7%. Bitcoin during the same time grew in price by 10,000,000%, therefore, Ammus asks who really failed.