BOE's Mark Carney Calls For Regulatory Approach Towards Cryptocurrencies

BOE's Mark Carney Calls For Regulatory Approach Towards Cryptocurrencies

Carney confirmed that United Kingdom watchdogs wanted to ensure financial firms active in the market for crypto assets, including specialist exchange groups, were held to the same regulatory standards as others. His currencies lost half their value in 10 years, while Bitcoin appreciated 10,000,000%.

Speaking on the topic "To isolate, regulate or integrate", Carney said that banning and sealing off crypto-assets as done by China could lead to the hampering of future financial innovations.

Carney endorsed the push by the U.S. Securities and Exchange Commission to classify cryptocurrencies as securities subject to laws governing how they are issued and traded.

Carney said: "The time has come to hold the crypto-asset ecosystem to the same standards as the rest of the financial system".

Virtual currencies based on nothing more than computer code would soon have to adhere to the "same standards as the rest of the financial system", he said, adding: "Being part of the financial system brings enormous privileges, but with them great responsibilities". He said the fixed supply of bitcoin resulted in "speculative mania".

In the US, the Securities and Exchange Commission is investigating the initial-coin-offerings (ICO) industry.

Companies use ICOs, which is a combination of crowdfunding and cryptocurrencies, to raise money by offering investors a digital token in exchange for money.

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"For the established banking community, there's a clear love/hate relationship with bitcoin and cryptocurrencies", Kevin Murcko, CEO of cryptocurrency exchange CoinMetro, told Newsweek.

Of course, Carney doesn't want to be 'the bad guy, ' and thus makes sure to reminds everyone that blockchain is good, as long as it plays by the rules of governments and financial institutions.

It is indeed true that, despite the negative position on bitcoin, the technology that it is built upon is of special interest to traditional banks.

What do you think of Carney's speech to Bloomberg?

Although he was very critical of cryptocurrencies, he described the blockchain technology they use as "exciting and interesting". Consider that if you had taken out a £1,000 student loan in bitcoin in last December to pay your sterling living costs for next year, you'd be short about £500 right now.

"Its was an old-dog-new-tricks approach with a benign nod to the potential".

The Bank of England governor has poured cold water over cryptocurrencies like bitcoin and their ability to revolutionise the future of money - saying the greater treasure is to be found in the underlying technology.

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