{"id":39077,"title":"BoE’s Governor Carney Says Bitcoin Fails as a Substitute Currency","publisher":"Share Talk","author":"sharetalk","published":"2018-02-20T09:59:59+00:00","modified":"2018-02-20T09:59:59+00:00","canonical_url":"https://www.share-talk.com/boes-governor-carney-says-bitcoin-fails-as-a-substitute-currency/","markdown_url":"https://www.share-talk.com/boes-governor-carney-says-bitcoin-fails-as-a-substitute-currency.md","json_url":"https://www.share-talk.com/boes-governor-carney-says-bitcoin-fails-as-a-substitute-currency.json","category":"Fintech","categories":["Fintech"],"tags":["Bank of England","Bitcoin","cryptocurrency","Mark Carney"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2023/11/Stencil-Google-Chrome-2023-04-19-at-2.47.43-PM.jpeg?fit=1231%2C615&quality=89&ssl=1","format":"news","language":"en-GB","content":"Photo: Mark Carney\n\n**The central bank is in no rush to embrace the new technology.‎**\n\nBank of England Governor Mark Carney sees fundamental problems with the concept of ‎Bitcoin as a viable currency when measured by ‎standard benchmarks.‎\n\nResponding to questions from students at London’s Regent’s University on Monday, ‎the BOE governor said that there are two big problems with bitcoin as a credible currency: its value is ‎unstable, and it can’t be a “useful way to buy things.”‎\n\nThe most important feature of a currency is to be a stable store of ‎value. Yet, the wild swings in the value of digital coins do not make it a more ‎plausible substitute currency, he added.‎\n\n‎“It 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,” Carney said.‎\n\nCarney repeated the BoE’s view that the blockchain technology that underpins bitcoin ‎and other virtual coins could improve the way transactions are conducted in a ‎decentralised way, which conceivably eliminates the hassle of exchanging ‎currencies and clearing the money through banks. But he highlighted, in ‎response to a question, the risks of rolling out such an approach across the entire ‎economy through a cryptocurrency intended for the public. ‎\n\nCarney said before that bitcoin actually behaves more like an equity or a ‎speculative asset, though the systems underlying cryptocurrencies are an “active ‎area of interest.” Even so, the central bank is in no rush to [embrace the new technology](https://www.financemagnates.com/cryptocurrency/news/bank-england-%E2%80%8Eto-beat-bitcoin-rival-cryptocurrency-coming-%E2%80%8E%E2%80%8E2018%E2%80%8E/).‎\n\n \n\n**[Original Article Link via financemagnates.com](https://www.financemagnates.com/cryptocurrency/news/boes-governor-carney-says-bitcoin-fails-substitute-currency/)**\n\nBy  Aziz Abdel-Qader | [News](https://www.financemagnates.com/cryptocurrency/news/) ([ CryptoCurrency ](https://www.financemagnates.com/cryptocurrency/))\n\n "}