BoE: Bitcoin not a currency
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Bank of England Governor Mark Carney stated that bitcoin has failed as a currency during a presentation at Regent’s University in London. He explains that the digital moneyFrom the Latin word moneta, nickname that was given by Romans to the goddess Juno because there was a minting workshop next to her temple. Money is any item that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular region, country or socio-economic context. Its onset dates back to the origins of humanity and its physical representation has taken on very varied forms until the appearance of metal coins. The banknote, a typical representati... More doesn’t satisfy any currency’s defining attributes such as being a store of valueOne of the functions of money or more generally of any asset that can be saved and exchanged at a later time without loss of its purchasing power. See also Precautionary Holdings. More or a useful means of exchangeThe Eurosystem comprises the European Central Bank and the national central banks of those countries that have adopted the euro. More – in reference to the digital currency’s volatility and poor acceptance rate.
Carney, however, does believe that the technology behind it, the blockchainAn unchangeable digital record where transactions are processed and verified by a network of independent computers rather than by a single referee. This decentralised structure has been described as an open distributed ledger. It supposedly enhances security as there is no single entity to be hacked. It also protects personal identity and guarantees that governments can’t block transactions or otherwise manipulate the payments space. The blockchain is the underlying technology supporting most ... More, could be useful for other applications. These statements come at a time when a number of central banks have admitted exploring options for the development of digital national currencies.
In regards to cryptocurrencies, other governments have expressed their concern from China to the US; from Singapore and now even Spain. Just recently, the Spanish National Stock Market Commission (CNMV) published describing bitcoinBitcoin is commonly said to be a cryptocurrency, a digital means of exchange developed by a set of anonymous authors under the pseudonym of Satoshi Nakamoto, which began operating in 2009 as a community project (Wikipedia type), without the relationship or dependency of any government, state, company or body, and whose value (formed by a complicated system of mathematical algorithms and cryptography) is not supported by any central bank or authority. Bitcoins are essentially accounting entries i... More as a volatile and unstable cryptocurrency. The report also warns investors about the risks related to crypto and ICO investments as none have been listed or verified by the Spanish authorities.
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