Bank of England Governor Says Bitcoin Failed as “Currency,” But There’s Hope for Blockchain

Bank of England Governor Says Bitcoin Failed as “Currency,” But There’s Hope for Blockchain

The head of the prime bank of the United Kingdom – Bank of England – latterly claimed that BTC has gone wrong both as currency and as a reserve of cost. Notwithstanding the above, he still believes in the application of blockchain, giving some bullish hope to crypto enthusiasts.

What Carney Had to Say About Bitcoin

Taking the floor at London’s Regent's University in front of young people, Mark Carney, the governor of the UK’s top bank said that BTC could not be treated as a legal currency in terms of traditional point of view. As The Telegraph reported, the principal British banker explained that bitcoin failed two the most significant conditions for a standard currency:

  • To be means of transfer
  • To reserve the value

In particular, Carney said:

"It [cyber money] 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."

But What About Distributed Ledger?

Despite anything, the banker stressed that blockchain, which is a core of cyber assets, might still be beneficial as long as it is decentralized. Specifically, Carney emphasized that this ledger tech trend will help to carry out verification of commercial operations without the involvement of third parties in the case.

By the way, it is not the first time when global policymakers or leaders speak in support of blockchain but against cryptos.

Hypocrisy?

In early January, The Telegraph reported that Carney informed the country’s Treasury Select Committee about his conversations with other central banks concerning the launch of Banks’s of England own cyber coin, based on the blockchain. According to that report, the implementation could take place already in 2018.

Remarkably, the British monetary institution has been investigating cryptos and the technology behind them since 2015.