Friday, 2 March 2018

Cryptocurrencies are failing as a form of money

European Share Markets

Cryptocurrencies are failing as a form of money and have shown classic signs of being a financial bubble, requiring regulators to protect consumers and stop their use for illegal activities, Bank of England Governor Mark Carney said on Friday. 


Cryptocurrencies are failing as a form of money and have shown classic signs of being a financial bubble, requiring regulators to protect consumers and stop their use for illegal activities, Bank of England Governor Mark Carney said on Friday.

Carney, who heads the Financial Stability Board, a global financial rule-making body, expressed doubts about cryptocurrencies earlier this year and his speech for a Scottish student economics conference expanded on these.

For now, they posed little financial stability risk to Britain as whole, due mostly to major banks’ limited involvement with them.

But for individual investors, they were a major risk.

Bitcoin prices have fallen sharply since December 2017. 

However, the distributed-ledger technology underlying cryptocurrencies did have potential for improving cash settlement in the banking system and other asset transactions, he added.

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