The Governor of Bank of England, Mr Mark Carney has made a public statement on Friday, that Cryptocurrencies are a failure when it comes to be considered as a substitute for currency but it’s technology could definitely make transformation in the financial firms. A large number of regulations have already been imposed on Crypto by the lawmakers, world wide. Carney adds up to these number as he says that the governing bodies should check on the criminal activities and enable new rules for the sector.
In his speech, he stated that inspite of demonstrating a good comeback, cryptocurrencies such as Bitcoin are not a replacement for cards and cash. Bitcoin started off at $1000 in 2017 surging upto $20,000 during December. The fall initiated in January and now it has shown signs of a good recovery.
Carney says: No Ban.
The month of February saw Facebook’s ban on advertising Crypto news. Carney did not ask for ban on the sector but he did mention the need for a better set of regulations in the industry. He said, “Many cryptocurrencies have exhibited the classic hallmarks of bubbles including new paradigm justifications, broadening retail enthusiasm and extrapolative price expectations reliant in part on finding the greater fool”.
Michael Mone, a Cryptocurrency enthusiast and the founder of EQUI supported Carney’s ideas as he stated that the need for regulation comes with having belief in Cryptocurrencies. It will help the sector progress and not create a raging sight of illegalities.
In the mid of March, bankers and financial heads from major economies of the world will discuss the future prospects of Cryptocurrencies.
However, as per Carney’s knowledge, the regulations are to be established by each country’s government, initially. Carney said that banning on Cryptocurrency might stifle with any opportunity in financial technology. This system could also make advancement in banking, tax system and medical record verification and other transactions and coming in it’s way would be a mistake.