{"id":5443,"date":"2018-03-05T13:26:27","date_gmt":"2018-03-05T13:26:27","guid":{"rendered":"https:\/\/www.legitgambling.com\/news\/?p=5443"},"modified":"2018-03-13T12:21:18","modified_gmt":"2018-03-13T12:21:18","slug":"bank-england-slams-cryptocurrencies","status":"publish","type":"post","link":"https:\/\/www.legitgambling.com\/news\/bank-england-slams-cryptocurrencies\/","title":{"rendered":"The Bank of England Chief Mark Carney Slams Cryptocurrencies"},"content":{"rendered":"<p><img decoding=\"async\" src=\"https:\/\/www.legitgambling.com\/news\/wp-content\/uploads\/2018\/03\/mark-carney.jpg\" alt=\"Mark Carney\" width=\"300\" class=\"alignleft size-full wp-image-5682\" \/>The Governor of the <a href=\"https:\/\/www.bankofengland.co.uk\/\">Bank of England (BOE),<\/a> Mark Carney, has slammed the meteoric rise <a href=\"https:\/\/www.legitgambling.com\/cryptocurrency\/\">of cryptocurrencies<\/a>. This was not a surprise as he has been vocal against digital currencies in the past. He said that huge moves thanks to volatility, like Bitcoin, were \u201c<strong>speculative mania<\/strong>.\u201d The expenses to mine Bitcoin are \u201c<strong>enormous<\/strong>.\u201d <\/p>\n<p>However, he said that bitcoin and other digital currencies pose \u201c<strong>no material risk<\/strong>\u201d to financial stability. For now.<\/p>\n<p>In his speech to the <a href=\"https:\/\/www.reuters.com\/article\/us-britain-boe-carney\/cryptocurrencies-are-failing-as-money-bank-of-englands-carney-idUSKCN1GE18N\">Scottish Economics Conference held at Edinburgh University<\/a>, given via video thanks too inclement weather conditions, the BOE chief said that the time has come to:<\/p>\n<blockquote><p>\u201chold the crypto-asset ecosystem to the same standards as the rest of the financial system.\u201d<\/p><\/blockquote>\n<p>Carney said that \u201celements\u201d of this ecosystem should be regulated in order to \u201ccombat illicit activities.\u201d He argued that this would promote market integrity as well as protecting the safety and soundness of the financial system.<\/p>\n<p>Even at the peak, with the cryptocurrency market, the overall market capitalization was less one percent of global gross domestic product. They are \u201csmall relative to the financial system. Even if they grew exponentially in 2017,\u201d he said.<\/p>\n<h2>Carney feels that Volatility with Cryptocurrencies is a Problem<\/h2>\n<p>Looking at the hectic volatility, Carney noted that the \u201caverage volatility\u201d of the top 10 cryptocurrencies by market capitalization \u201cwas more than 25 times\u201d that of the U.S. equities market last year. Bitcoin was also one of the more stable cryptocurrencies. Suffice to say, that coin was very volatile in 2017.<\/p>\n<p>\u201cThis extreme volatility reflects in part that cryptocurrencies have neither intrinsic value nor any external backing. Their worth rests on beliefs regarding their future supply and demand &#8211; ultimately whether they will be successful as money,\u201d he said.<\/p>\n<p>Carney, is a former Goldman Sachs banker and is also\u00a0Chairman of the G20&#8217;s\u00a0<a href=\"http:\/\/www.fsb.org\/\">Financial Stability Board (FSB)<\/a>. He told the conference in\u00a0Edinburgh\u00a0that energy consumption, of mining these coins, is troublesome. He said that the current costs of electricity consumption used to mine digital coins are \u201cdouble the electricity consumption of Scotland.\u201d<\/p>\n<h2>The Cost of Mining Digital Coins is Prohibitive<\/h2>\n<p>The cost to mine cryptocurrencies is currently <a href=\"http:\/\/www.wired.co.uk\/article\/how-much-energy-does-bitcoin-mining-really-use\">estimated to be nearly 52 terawatt<\/a> hours. This more than doubles the current consumption of Scotland. To compare things, the Visa credit card network uses a half of one percent of what bitcoin uses and it processes 9,000 times more transactions than bitcoin.<\/p>\n<p>Carney\u2019s speech was entitled <em>The Future of Money<\/em>\u00a0and he said that that cryptocurrencies do not pose a risk to the economy.\u00a0He did warn, however, that authorities should be careful not to \u201cstifle innovations.\u201d<\/p>\n<p>During his speech, he did speak about regulating this new industry as it gains traction and popularity around the world. Carney said that \u201cisolation risks foregoing potentially major opportunities from the development of the underlying payments technologies.\u201d<\/p>\n<p>He noted that \u201ca better path would be to regulate elements of the crypto-asset ecosystem to combat illicit activities, promote market integrity, and protect the safety and soundness of the financial system.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Governor of the Bank of England (BOE), Mark Carney, has slammed the meteoric rise of cryptocurrencies. This was not a surprise as he has been vocal against digital currencies in the past. He said that huge moves thanks to volatility, like Bitcoin, were \u201cspeculative mania.\u201d The expenses to mine Bitcoin are \u201cenormous.\u201d However, he [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[68,5],"tags":[],"class_list":["post-5443","post","type-post","status-publish","format-standard","hentry","category-cryptocurrency","category-uk"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Bank of England Slams Cryptocurrencies<\/title>\n<meta name=\"description\" content=\"BOE Chief Mark Carney Slams Cryptocurrencies. The Governor of the Bank of England, Mark Carney, has slammed the meteoric rise of cryptocurrencies. 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This is not his first time doing so.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.legitgambling.com\/news\/bank-england-slams-cryptocurrencies\/\" \/>\n<meta property=\"article:published_time\" content=\"2018-03-05T13:26:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2018-03-13T12:21:18+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.legitgambling.com\/news\/wp-content\/uploads\/2018\/03\/mark-carney.jpg\" \/>\n<meta name=\"author\" content=\"Kate Leaman\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@KateLLeaman\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kate Leaman\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.legitgambling.com\\\/news\\\/bank-england-slams-cryptocurrencies\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.legitgambling.com\\\/news\\\/bank-england-slams-cryptocurrencies\\\/\"},\"author\":{\"name\":\"Kate Leaman\",\"@id\":\"https:\\\/\\\/www.legitgambling.com\\\/news\\\/#\\\/schema\\\/person\\\/d08e190f732ea23e0fb1df4100c9c06c\"},\"headline\":\"The Bank of England Chief Mark Carney Slams Cryptocurrencies\",\"datePublished\":\"2018-03-05T13:26:27+00:00\",\"dateModified\":\"2018-03-13T12:21:18+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.legitgambling.com\\\/news\\\/bank-england-slams-cryptocurrencies\\\/\"},\"wordCount\":510,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/www.legitgambling.com\\\/news\\\/bank-england-slams-cryptocurrencies\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.legitgambling.com\\\/news\\\/wp-content\\\/uploads\\\/2018\\\/03\\\/mark-carney.jpg\",\"articleSection\":[\"Cryptocurrency\",\"UK\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.legitgambling.com\\\/news\\\/bank-england-slams-cryptocurrencies\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.legitgambling.com\\\/news\\\/bank-england-slams-cryptocurrencies\\\/\",\"url\":\"https:\\\/\\\/www.legitgambling.com\\\/news\\\/bank-england-slams-cryptocurrencies\\\/\",\"name\":\"Bank of England Slams Cryptocurrencies\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.legitgambling.com\\\/news\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.legitgambling.com\\\/news\\\/bank-england-slams-cryptocurrencies\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.legitgambling.com\\\/news\\\/bank-england-slams-cryptocurrencies\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.legitgambling.com\\\/news\\\/wp-content\\\/uploads\\\/2018\\\/03\\\/mark-carney.jpg\",\"datePublished\":\"2018-03-05T13:26:27+00:00\",\"dateModified\":\"2018-03-13T12:21:18+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/www.legitgambling.com\\\/news\\\/#\\\/schema\\\/person\\\/d08e190f732ea23e0fb1df4100c9c06c\"},\"description\":\"BOE Chief Mark Carney Slams Cryptocurrencies. 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