Bank of England Boss Calls Bitcoin A “Social Failure”
Cryptocurrency Experts took some time last month to discuss statements made by Bank of England’s Governor Mark Carney who qualified Bitcoin as a “Social Failure”.
He explained that cryptocurrencies have all the features of a bubble that only attracts the attention of the unwary.
According to Carney, cryptocurrency prices have shown signs of a possible bubble that includes clarifying the paradigm, expanding retailers’ interest, and fluctuating prices that depend on carelessness.
In addition, crypto-assets presently have various flaws in buyer and investor security, crime rates, fraudulent activity, tax evasion, and the circumvention of capital controls and global laws.
Sharing the same position, Kevin Murcko, CEO of Coin Metro Cryptocurrency Exchange was also on the same page as Mr. Carney, but still having a less strict view saying that there is certainly a need for regulation. He added, “The core content of Carney’s discourse, while highly negative and damning, calls for further regulation, which shows us that a legal financial framework for crypto space is quickly becoming a reality.”
To create stability in the market, strict measures must be put in place, in addition to support from leading institutions. Investors can benefit in the long run. For a currency to survive, it needs strong security rules.
Murcko joined Carney in saying “this is something that crypto-currencies have struggled with because of the unregulated and expensive infrastructure that currently supports their issuance, ownership, and trade. The current volatility that we have witnessed through the crypto markets is largely caused by a lack of regulation and consistency in the way they are traded. ”
“What is important is that the central banks do not disrupt the cryptography industry, which, contrary to what some believe, is still in its infancy and will only grow.”