Speaking at a private event in Regent’s University London, Bank of England Governor, Mark Carney said that by traditional definitions, Bitcoin can not be rightly called a currency.
Carney claimed that Bitcoin has does not have two key characteristics of traditional currencies:
1. It is not a store of value because it is all over the map
2.Nobody uses it as a medium of exchange
It 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.
However Carney added:
Cryptocurrency’s underlying technology may still prove useful as way to verify financial transactions in a decentralized way.
Carney is not alone in advocating that bitcoin should not be regarded as a currency, UBS Wealth Management’s outspoken chief economist Paul Donovan said in November that bitcoin will never become a true currency because of a series of “fatal” flaws.
“A currency has to be a widely used medium of exchange,” Donovan said. “Cryptocurrencies are never going to achieve that. Period.”
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