Carney: Bitcoin "failed" to impose itself as currency :


London - Bank of England Governor Mark Carney has said that bitcoin has failed to become a currency, as financial authorities and governments multiply warnings against this unregulated asset.
"It has rather failed so far regarding (...) the traditional functions of the currency," said Carney, during an exchange with students Monday night at Regent's University in London reported by the agency Bloomberg.

"It's not a store of value because it goes in all directions" and "nobody uses it as a means of exchange," according to the governor.

Mr. Carney was referring to two key functions of a currency, namely the store of value which corresponds to the certainty that the currency will remain roughly stable, as well as the medium of exchange that guarantees the ability to buy and sell goods.

The third function of a currency is the unit of account, which makes it possible to attribute a price to a good.


Bitcoin is so volatile that it can win or lose hundreds of dollars in just a few tens of minutes. It is currently trading at around $ 11,500, after falling below $ 6,000 in early February when it was close to $ 20,000 in December.

Virtual currencies, which allow for perfectly anonymous international transactions, are also accused of being used as a money laundering tool for criminal networks.

The British government had meanwhile called late January to regulate bitcoin quickly, before it ends up representing a real threat to the financial system.

The subject will be discussed at the next G20 Finance in March, where the French and German finance ministers will present common proposals on the regulation of cryptocurrencies.

In a study published Tuesday, the rating agency Standard and Poor's estimates that cryptocurrencies are above all tools of speculation and that they do not have the capacity to threaten global financial stability in case their value 'collapse.

For the agency, these assets can only flourish with professional investors if they are regulated at the global level.

In the meantime, any jolt of cryptocurrency would affect mainly private investors for the time being, while the exposure of large banks remains limited, Standard and Poor's rating.
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