The head of the Bank of England, mark Carney, in his speech at the opening of the Scottish economic conference in Edinburgh on March 2, called on the authorities to regulate the cryptocurrency, not “ban them”.
According to Carney, cryptocurrency does not threaten “financial stability” at the moment, but it is quite likely when they become more popular. Carney believes that the time has come to incorporate the cryptocurrency ecosystem to the rest of the financial system, applying the same approach to regulation and the same “strict standards”.
Carney believes that this not only minimizes the money laundering and investment risks for consumers, but also help to adapt the technology for wider use.
After his recent speech at London’s Regent University, in which Carney claimed that bitcoin “failed” as a currency, the head of the Central Bank again stressed that he believes digital currency assets.
Carney noted the huge volatility of these assets, noting that the cryptocurrency “demonstrate the classic features of a bubble”, because their prices are based on “beliefs about the future demand for them,” and have no “intrinsic value” or external support. He even compared the cryptocurrency market with the lottery.
Imagine that last year you would have taken a student loan in bitcoins to the amount of 1000 pounds. Now, if you did it in December, you would now be in the red by about £ 500, and if you did the same in September, you would be in the black at 1000 pounds. So it’s basically like a lottery.