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Bank of England governor Mark Carney has doubled his recent critiques of critics on cryptocurrencies , saying Friday that he “fails” in their quest to fill the roles of money.

Cryptocurrency “Fault” as money: Governor of the Bank of England

Carney, who is also chairman of the G20 Financial Stability Board, made the statement during a speech at the Scottish Economic Conference, arguing that cryptocurrencies are not a viable alternative to fiat money.

“The long and charitable answer is that cryptocurrencies act as money, at best, only for certain people and to a limited extent, and even then only in parallel with the traditional currencies of users “. “The short answer is that they fail.”

The head of the central bank said that Bitcoin and its peers are poor value stores, ineffective and virtually non-existent exchange media as units of account.

Previously, Carney had told a group of students at Regent University in London that Bitcoin was not a legitimate currency, citing the same evidence to argue its point of view.

Cryptocurrences still in phase of price discovery

However, proponents would probably answer that these criticisms are unfair, given that crypto – currencies have been circulating for less than a decade and most people have probably heard that the crypto – currencies have been circulating for less than a decade. ;last year.

Indeed, their extreme volatility comes from the fact that they remain in a phase of price discovery, while the market is trying to determine what role they will play in the financial system over the long term. This also explains why cryptocurrency-friendly traders continue to denominate cash money items, as well as why many users currently prefer “hodl” than spending their coins.

Although cryptocurrencies are not yet an effective payment mechanism, their usefulness in this regard will increase as scalable solutions such as the Lightning Network (LN) come online and other retailers will adopt cryptocurrency payments. . arrive soon.

Notably, however, Carney – despite his sharp criticisms – also acknowledged that cryptoassets have become part of the traditional financial system, which is why he argued that they should be held to the same regulatory standards than traditional assets.

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