Cryptocurrency is terrible as money but “crypto-assets” are for real, says Bank of England’s chief
Cryptocurrencies represent a deeply flawed form of money, but policymakers should be careful not to crack down too hard on “crypto-assets,” Mark Carney, governor of the Bank of England, argued in a speech (pdf) today.
Failing as money: Carney excoriated Bitcoin and similar cryptocurrencies, calling them poor stores of value and inefficient media of exchange. The prospects that cryptocurrency will replace fiat money are “tenuous at best,” he said.
Don’t over-regulate: Cryptocurrencies are not “true currencies” and should instead be thought of as “crypto-assets,” Carney said, adding that they could have valuable future applications—for instance, as part of “more innovative, efficient, and reliable payment systems.” He cautioned against overzealous regulation or outright bans, lest they stifle innovation that could indeed lead to large-scale improvements in the financial system.
Kids’ stuff: Ultimately, Carney said, the British bank is keeping an “open mind” about whether it might one day issue its own digital money. But if it does, it “shouldn’t be a solution in search of a problem or an effort of central bankers to be down with the kids.”
For news and deep dives into the world of cryptocurrencies and blockchains, check out our twice-weekly newsletter Chain Letter. Sign up here—it’s free!
Keep Reading
Most Popular
Large language models can do jaw-dropping things. But nobody knows exactly why.
And that's a problem. Figuring it out is one of the biggest scientific puzzles of our time and a crucial step towards controlling more powerful future models.
How scientists traced a mysterious covid case back to six toilets
When wastewater surveillance turns into a hunt for a single infected individual, the ethics get tricky.
The problem with plug-in hybrids? Their drivers.
Plug-in hybrids are often sold as a transition to EVs, but new data from Europe shows we’re still underestimating the emissions they produce.
Stay connected
Get the latest updates from
MIT Technology Review
Discover special offers, top stories, upcoming events, and more.