Bank of England Head: Bitcoin ‘Has Failed’ in Being Currency

Mark Carney — the Governor of the Bank of England — just bashed the viability of bitcoin being a mainstream asset in new comments. He chided the cryptocurrency’s potent volatility, suggesting the digital asset is no real store of value. 

Carney: “Not a Store of Value”

As the line in the sand regarding bitcoin’s mainstream acceptance continues to get pushed back and forth, slot Bank of England Governor Mark Carney officially on the side of the naysayers — at least for now.

“It has pretty much failed […] the traditional aspects of money,” Carney argued during a February 19th discussion at Regent University in London. “It is not a store of value because it is all over the map. Nobody uses it as a medium of exchange.”

Carney’s use of “nobody” here is rhetorical, not literal. But even still, he is wrong. Imperfections and all, the use of bitcoin in the growing cryptoeconomy has become robust. For example, BitPay — a cryptocurrency payment processor for merchants — processes hundreds of thousands of bitcoin transactions every day.

That’s a lot of exchanging, and that’s only one company in the cryptoverse.

I Like Blockchain, Not Bitcoin …

When queried during his talk at Regent, Carney suggested that even with his concerns about bitcoin, he still believed blockchain technology could be useful in facilitating decentralized financial infrastructures.

The “useful” sentiment is already a given to those in the cryptocurrency space, of course. But Carney is coming at the topic in the wrong way if he thinks the usefulness of blockchain tech isn’t completely tethered to bitcoin and where the cryptocurrency has stunningly succeeded.

For there would be no blockchain without bitcoin.

So where Carney sees failure, many see success. The glass is half empty or half full, depending on who’s looking. And, as always, the truth is probably in the grayish middle — BTC has both succeeded and failed in different ways and at different times. It’s all about the rubric.

What’s your take? Do you think Carney is being to harsh in his remarks, or is his critique fair for now? Sound off in the comments below. 

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