BofE governor Carney says bitcoin has failed as a currency

Bank of England Governor Mark Carney has called time on bitcoin, saying that it has failed as a currency.

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BofE governor Carney says bitcoin has failed as a currency

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

In a Q&A session follwing a speech on leadership to students at London's Regent University, Carney said of bitcoin: β€œIt 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."

His sentiments echo those of payment processor Stripe, which has dropped its support for bictoin saying that crazy price fluctuations and higher fees render the cryptocurrency unusable as a form of payment.

Such views are becoming common currency in financial markets. UBS Wealth Management chief economist Paul Donovan recently remarked: "A currency has to be a widely used medium of exchange. Cryptocurrencies are never going to achieve that. Period."

Warren Buffett, arguably the world's most successful and respected investor, has also issued a scathing assessment of cryptocurrencies and predicted a "bad ending" for the current bitcoin boom.

"I can say almost with certainty that cryptocurrencies will come to a bad end,” said Buffet in an interview with US TV channel CNBC. "When it happens or how or anything else, I don't know," he added.

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Comments: (1)

A Finextra member 

There was published evidence that Tether was used (to create very large sums) to drive a price spike in Bitcoin, setting up the recent volatility. As the article describes, Tether was supposed to be backed by USD, but there was ample evidence it was not.

Not everybody is friendly to bitcoin. One is the deep/dark state at the top of the money food chain. Ask Carney why they solved the 2008 debt crisis by doubling global debt, and what happens when the next debt crisis explodes ... The tin foil hat theory is that the deep/dark state would prefer us to have nowhere to hide, and we'll run to their arms for a "solution". The BIS website outlines putting us under a global central bank, curtailing or ending sovereign currencies, and thus a fair degree of sovereignty.

Not one part of the 2008 crisis response was sensible unless you're a big bank, from lifting debt off the their backs for free in many cases, to handing them $5 trillion to stimulate things (proven useless) rather than taxpayers (proven useful), to giving them free money for a decade (0% rates) to letting them rewrite the banking rules and sink all but 4,000 of 15,000 medium size banks in the US, ... the list goes on.

People in financie should know these thing

 

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