Bank of England executive has said that bitcoin has failed as a currency owing to its constant fluctuations and its inability to show its worth as a store of value.
The statements were made by Mark Carney, head of the Bank of England and Chairman of the G20’s Financial Stability Board. He said that despite bitcoin on an up it isn’t store of value and it’s not a medium of exchange because no one uses it.
“It has pretty much failed thus far on… the traditional aspects of money. It is not a store of value because it is all over the map. Nobody uses it as a medium of exchange”, he said.
Blockchain technology, however, can be useful in facilitating transactions in a decentralized way, he said. While more widely he admitted that the Bank of England is powerless to stop the next financial crisis.
“We must remember that, although we can make financial crises less likely to happen and less severe when they do occur, we cannot abolish them,” Carney said.
Following a considerable increase in the value of digital currencies, which have now risen to a half a trillion global market cap, bankers have been more and more vocal in dissing and even slandering cryptocurrencies.
As we revealed recently, Poland’s Central Bank has gone so far as to secretly pay youtubers to slander digital currencies like bitcoin or ethereum.
While Switzerland’s Central Bank has seemingly started an implicit campaign for a No vote on a new binding referendum on whether Switzerland should move to debt free money, otherwise called sovereign money or positive money.
That’s the very first vote of its kind, and has the attention of Germany’s central bank and others because the Swiss people could give the world a bigger shock than Brexit and Trump combined in an historic June 10th 2018.
Whether such comments from Carney assist Switzerland’s bankers, or further repel ordinary people who see an out of touch elite that keeps making itself richer and richer while others get poorer in the highest levels of inequality for centuries, remains to be seen.
But what is becoming somewhat clear is that the topic of money is now very much on the table, which means we might hopefully start hearing more and more from Austrian economists, who have so far completely given the stage to Keynesians.