Canadian economist Mark Carney, who is the governor of the Bank of England and chairman of the G20 Financial Stability Board, called for more stringent control over the “anarchy” in the field of cryptocurrency. He stated this at a financial conference in Edinburgh, continuing his rhetoric against the cryptocurrency, which is quite natural for the person occupying his post.
In the course of his speech, Carney extolled the technology of blockchain, which underlies bitcoin and other cryptocurrencies, while trying to expose the cryptocurrencies themselves in a negative light.
“Short answer: they fail. Cryptocurrencies are a weak means of accumulation. Over the past 5 years, daily deviations of the bitcoin rate exceed the same pound rate by a factor of 10. This extreme volatility shows that the cryptocurrencies have neither internal value nor external security. Their value is based on the expectation of future demand and supply and how successful they will be as money,” Carney said.
To somehow justify his point of view, Carney gave an example:
“Suppose you took a student loan of £ 1,000 in bitcoins in December last year. In this case, by the present moment your loss would have already been £ 500. If you did the same thing in September last year, you would already be in the plus for £ 2,000. This is a lottery.”
Building on this hypothetical situation, Carney stated that a “sober assessment” allows us to reveal all classical signs of a bubble in cryptocurrencies: justifying a new paradigm, increasing interest in the retail sector and inflating expectations of the course in order to find a bigger fool.
Of course, Carney does not want to be misunderstood, and specifies that the blockchain is a good technology, while it is used for good purposes, namely, in the interests of governments and financial structures.
“The best option is to regulate the elements of the crypto-active ecosystem in order to combat illegal activities, to promote market integrity and the soundness of the financial system. The status of a participant in the financial system gives huge privileges, but at the same time implies a significant responsibility. The basic technology of crypto currency is already influencing. By entering cryptocurrencies into a regulatory framework, we will be able to contribute to the development of innovations that will work in the public interest,” he summed up.