Amid the increasing pressures, tighter regulation from various countries. Another “negative” comment has Bitcoin receives as Bank of England Governor said the so-called “King of Crypto” failed to commit one of its key aims.
According to Bank of England Governor Mark Carney, “Bitcoin has “failed” to become an actual currency.”
In his speaking engagement at London’s Regent’s University, Carney told students that bitcoin fails two key tests: it is neither a medium of exchange nor a store of value.
It can be remembered that UBS, S&P Global Ratings, and a senior ECB board member have all made similar arguments in recent months.
“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,” Carney said during a Q&A session.
Payment provider Stripe dropped support for bitcoin at the startup the year, saying there are “fewer and fewer use cases for which accepting or paying with Bitcoin makes sense.”
Video game marketplace Steam also dropped bitcoin support in December, blaming “high fees and volatility in the value of bitcoin.”
Another key feature of a currency is that it acts as a store of value: you can invest your money and be reasonably sure that its value will not fluctuate massively. Bitcoin, which has seen its price appreciate around 30% in the last week alone, does not offer that protection.
Carney’s views are in-line with many other central banks and traditional financial figures.
S&P Global Ratings argued this week that cryptocurrencies are “a speculative instrument” rather than a cryptocurrency and ECB board member Yves Mersch said earlier this month that cryptocurrencies “are not money.”