Mark Carney of BoE Reminds Central Banks to Maintain Trust in Money
The Bank of England is open for a central bank supported cryptocurrency in future
The Bank of England governor Mark Carney looking towards the future of central banks reminded that the main role of central banks is to ensure and maintain trust in money. A central bank supported cryptocurrency from the BoE is still not investigated in depth. The reason is due to the volatility seen with cryptocurrencies these days making it a medium with low security for exchange. He believes cryptocurrencies are unable to perform the role of money for the time being.
Carney, the BoE governor stated during a panel session at Stockholm, Sweden that the ‘past, present, and the future’ of companies rely in maintaining public confidence. He also highlighted the importance of BoE overhauling the financial sector after the financial crisis. The efforts were to make the system more resilient to unplanned situations like the Brexit vote in 2016.
Carney’s view on Bank of England
In March 2018, Carney ordered to bring in government regulations for digital currencies stating that, “the time has come to hold the crypto-asset ecosystem to the same standards as the rest of the financial system”.
The international finance regulator Financial Stability Board, also headed by Carney, is one of the many insider institutions which greatly oversees the coins as well. He argues that cryptocurrencies are extremely volatile without any intrinsic value. This leads to failure of digital currencies as a form of money. He further put down the potential of central bank backed cryptocurrency anytime soon. But, he said the Bank of England will still keep an open mind about the possibility of such a coin in future.
BoE Supported Cryptocurrency
In February 2018, Barry Sheerman, a Labour MP brought up the question of “whether the government will introduce a fiat digital currency”. The Economic Secretary to the Treasury and City Minister, John Glen replied to the statement in the following manner;
The Bank of England does not currently plan to issue a central bank-issued digital currency… However, the Bank is undertaking research to better understand the implications of a central bank issuing a digital currency.
According to a survey carried out by D-CYFOR, a market research and polling company, contrastingly it was found that over 60 percent of people in the United Kingdom, who responded to the survey stated that they are not in liking of a BoE-supported cryptocurrency.
The research also showed that 93 percent of British citizens are familiar with the word Bitcoin, presumably after the sudden rush of Bitcoin during December 2017 making it a hot topic worldwide.