BANK OF ENGLAND GOVERNOR CLAIMS BITCOIN HAS FAILED AS A CURRENCY

The world of cryptocurrency is no stranger to controversy, and the opinions of financial leaders often add fuel to the fire. Bank of England Governor Mark Carney claims cryptocurrency is not a legitimate currency, arguing it is neither a means of exchange, nor a store of wealth. At an event at London s Regent'sRecently, Bank of England Governor Mark Carney reignited the debate surrounding Bitcoin's legitimacy, asserting that it has ""pretty much failed"" as a currency. According to Bank of England Governor Mark Carney, Bitcoin has failed as both a viable currency and as a store of value citing volatility and the lack of vendor adoption. On February 19th, Carney shared his already well-established position on the popular cyrptocurrency with students at London s Regent s University, stating:This isn't a new stance for Carney, who has consistently expressed skepticism about Bitcoin's viability as a mainstream form of money.His arguments center around its volatility, limited adoption, and failure to meet the fundamental criteria of a currency: a stable store of value, a reliable medium of exchange, and a unit of account. On the back of Bitcoin s recent correction and subsequent push back towards the $12K mark, long-time Bitcoin nonbeliever Mark Carney claims that the dominant cryptocurrency has failed on almost eve Bank of England Governor: Bitcoin Has Failed as a CurrencyBut is his assessment accurate, or is it a reflection of traditional financial institutions struggling to adapt to a rapidly evolving landscape?This article delves into Carney's claims, examines the arguments for and against Bitcoin as a currency, and explores the broader implications for the future of digital money.

Mark Carney's Critique of Bitcoin

Carney's criticism of Bitcoin is rooted in its failure to fulfill the core functions of money.He argues that Bitcoin's notorious price fluctuations make it unsuitable as a store of value. Bitcoin (BTC=BTSP) has failed as a currency measured by standard benchmarks, and is neither a store of value nor a useful way to buy things, Bank of England Governor Mark Carney said on Monday. It has pretty much failed thus far on the traditional aspects of money. Nobody uses it as a medium of exchange, Carney told students at London's Regent's University.Its value can plummet dramatically in short periods, eroding purchasing power and making it risky to hold as a long-term asset. Bitcoin has failed as a currency measured by standard benchmarks it is neither a store of value, nor a useful way to buy things, Bank of England Governor Mark Carney said on Monday. It hasThis volatility also makes it an unreliable medium of exchange, as merchants are hesitant to accept a currency whose value could change significantly between the transaction and when they convert it back to their local fiat currency. See for example New Forms of Digital Money (June 2025), Bank of England or Central Bank Digital Currencies: Financial Stability Implications (September 2025), BIS and Seven Central Banks. Financial Times,, Crypto platforms need regulation to survive, says SEC boss .Finally, its lack of widespread acceptance prevents it from becoming a standard unit of account, making it impractical for pricing goods and services.

Lack of Store of Value

One of the main pillars of Carney's argument is that Bitcoin's extreme volatility renders it unsuitable as a store of value.He points out that the price swings are too unpredictable and significant for individuals to confidently store their wealth in Bitcoin. Posted by u/[Deleted Account] - 4 votes and 3 commentsThis argument is supported by numerous historical examples of dramatic Bitcoin price crashes.The argument centers around the fact that a good store of value should be relatively stable and predictable, allowing people to save and plan for the future without the fear of their wealth evaporating overnight.

For example, imagine someone saving for retirement. Bitcoin has so far failed in its ambition to be a legitimate currency, Bank of England Governor Mark Carney said on Monday evening. Speaking at a private event at London's Regent's UniversityIf they invested a significant portion of their savings in Bitcoin and the price subsequently crashed, their retirement plans could be severely impacted.This inherent risk makes Bitcoin a less attractive option for those seeking a safe and reliable way to preserve their wealth. Mark Carney, the Governor of the Bank of England (BoE), has claimed that [Bitcoin] 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. These comments were made Monday evening MoreHowever, proponents of Bitcoin argue that this volatility is inherent to its early stage of adoption and will decrease as the market matures and the user base grows.

Inefficient Medium of Exchange

Carney also asserts that Bitcoin has failed as a medium of exchange due to its slow transaction speeds, high transaction fees (at times), and limited acceptance by merchants. So much so, bitcoin trades at a premium in countries like Zimbabwe and Venezuela, where fiat currencies failed the people. Central Banks on Bitcoin Mark Carney s comments are scarcely surprising and fall in line with those of other central bankers and Wall Street personalities, who have recently been weighing in on bitcoin and theWhile transaction fees have decreased and transaction speeds have improved with solutions like the Lightning Network, these remain hurdles for wider adoption. On the back of Bitcoin s recent correction and subsequent push back towards the $12K mark, long-time Bitcoin nonbeliever Mark Carney claims that theImagine trying to buy a coffee with Bitcoin and the transaction takes 10 minutes to confirm, or the fee is higher than the cost of the coffee itself.These are not practical for everyday transactions.

Moreover, the complexity involved in using Bitcoin can be daunting for the average consumer.Setting up a wallet, understanding transaction fees, and ensuring the security of your private keys requires a certain level of technical knowledge that many people simply don't possess. Bitcoin has pretty much failed thus far on the traditional aspects of money, Bank of England Governor Mark Carney said.This barrier to entry further limits Bitcoin's potential as a widespread medium of exchange.

Limited Unit of Account

Finally, Carney argues that Bitcoin is not a viable unit of account because few businesses price their goods and services in Bitcoin.Pricing everything in Bitcoin is highly impractical when the value of Bitcoin is constantly changing in relation to other currencies and the global economy.Consumers would struggle to understand the relative cost of goods and services if the ""Bitcoin price"" changed drastically from one day to the next.

For example, consider a small business owner who needs to pay suppliers, employees, and rent in their local fiat currency. Bitcoin, Altcoins and Exchanges Bank Of England Governor Claims bitcoin Has Failed Views 834 Tags banks bitcoin crypto currencies news will cryptoIf they price their goods and services in Bitcoin, they would constantly need to adjust prices based on the fluctuating exchange rate, adding significant complexity and uncertainty to their business operations. Bank of England Governor Mark Carney claims cryptocurrency is not a legitimate currency, arguing it is neither a means of exchange, nor a store of wealth. Please note, this is a STATIC archive of website cointelegraph.com from, cach3.com does not collect or store any user information, there is no phishing involved.Therefore, Bitcoin is not yet seen as a suitable or practical denomination for commerce.

Arguments for Bitcoin as a Currency

Despite Carney's criticisms, proponents of Bitcoin argue that it does possess qualities that make it a promising currency, particularly in specific contexts.They argue that Bitcoin offers several advantages over traditional fiat currencies, including decentralization, transparency, and limited supply.These advantages, they believe, can make Bitcoin a valuable tool for financial inclusion, particularly in countries with unstable economies or limited access to banking services.

Decentralization and Financial Inclusion

One of the key arguments in favor of Bitcoin is its decentralized nature.Unlike traditional fiat currencies, which are controlled by central banks and governments, Bitcoin operates on a peer-to-peer network, free from central control.This decentralization can provide a measure of financial freedom and autonomy, particularly in countries where governments are unstable or have a history of currency manipulation.

In countries like Venezuela or Zimbabwe, where hyperinflation has eroded the value of local currencies, Bitcoin can offer a more stable and reliable alternative.It can also provide access to financial services for those who are unbanked or underbanked, allowing them to participate in the global economy without relying on traditional financial institutions.This is why Carney mentioned that Bitcoin trades at a premium in those countries.

Transparency and Security

Bitcoin transactions are recorded on a public ledger called the blockchain, which provides a high degree of transparency.Anyone can view the transaction history of a particular Bitcoin address, making it difficult to engage in illicit activities without being detected.This transparency can also help to build trust in the system, as users can verify the validity of transactions and track the flow of funds.

Furthermore, Bitcoin transactions are secured using cryptography, making them resistant to hacking and fraud.While Bitcoin exchanges can be vulnerable to hacking, the Bitcoin network itself has proven to be remarkably secure.This security, coupled with transparency, makes Bitcoin an attractive option for those seeking a safe and reliable way to store and transfer value.

Limited Supply and Inflation Resistance

Bitcoin has a fixed supply of 21 million coins, which means that it cannot be inflated by central banks or governments.This limited supply makes Bitcoin a potentially valuable hedge against inflation, as its value is not subject to the same inflationary pressures as fiat currencies.

As governments around the world continue to print money to stimulate their economies, the value of fiat currencies may continue to erode over time.Bitcoin, with its fixed supply, offers a potential alternative for those seeking to preserve their wealth in the face of inflation.This is why some investors view Bitcoin as ""digital gold,"" a store of value that can hold its own against inflationary pressures.

The Future of Cryptocurrency and Central Bank Perspectives

While Governor Carney has been critical of Bitcoin, it's important to note that central banks around the world are increasingly exploring the potential of digital currencies.Some are even considering the development of their own Central Bank Digital Currencies (CBDCs).This suggests that while Bitcoin may not be seen as a direct replacement for fiat currencies, the underlying technology and concepts behind it are gaining traction within the financial establishment.

Central Bank Digital Currencies (CBDCs)

CBDCs are digital versions of a country's fiat currency, issued and regulated by the central bank.Unlike cryptocurrencies like Bitcoin, CBDCs would be centralized and subject to government control.However, they could offer several advantages over traditional cash, including increased efficiency, reduced transaction costs, and improved financial inclusion.

Several countries, including China, Sweden, and the Bahamas, are already piloting or have launched CBDCs.The potential impact of CBDCs on the global financial system is significant, and their development could reshape the future of money.While they wouldn't necessarily compete directly with Bitcoin, they could offer a more regulated and stable alternative to existing cryptocurrencies.

Regulation of Cryptocurrency Platforms

Another important aspect of the future of cryptocurrency is regulation.As the market matures and more people adopt cryptocurrencies, governments around the world are grappling with how to regulate this emerging asset class.Securities and Exchange Commission (SEC) Chair Gary Gensler, as reported by the Financial Times, is advocating for more regulation of crypto platforms to ensure their survival.

The regulation of cryptocurrency platforms is a complex issue, as it needs to strike a balance between protecting investors and fostering innovation.Overly strict regulations could stifle the growth of the industry, while a lack of regulation could lead to fraud and abuse.Finding the right balance will be crucial for the long-term success of the cryptocurrency market.

Has Bitcoin truly failed as a currency?

The question of whether Bitcoin has ""failed"" as a currency is complex and depends on one's definition of success.If success is defined as widespread adoption and use in everyday transactions, then Bitcoin has undoubtedly fallen short of expectations.However, if success is defined as providing a decentralized, transparent, and secure alternative to traditional fiat currencies, then Bitcoin has achieved significant milestones.

• Volatility: Bitcoin's volatile price continues to be a major barrier to its adoption as a mainstream currency.
• Transaction Fees and Speed: While improvements have been made, high transaction fees and slow transaction speeds can make Bitcoin impractical for everyday transactions.
• Acceptance: While the number of merchants accepting Bitcoin is growing, it is still limited compared to traditional payment methods.

However, it's important to remember that Bitcoin is still a relatively young technology.The internet, for example, was initially met with skepticism and faced many challenges before becoming the ubiquitous tool it is today.Similarly, Bitcoin may require further development, increased adoption, and regulatory clarity before it can truly fulfill its potential as a global currency.It is also imperative to separate Bitcoin from the thousands of other cryptocurrencies and projects, each with their own success metrics and intended use cases.

What are the Key Takeaways from Carney's Statement?

Mark Carney's comments highlight the challenges that Bitcoin faces in becoming a mainstream currency.His perspective reflects the concerns of traditional financial institutions, which are wary of the disruptive potential of cryptocurrency.Several key points can be extracted from his statements:

1. Bitcoin's volatility makes it an unreliable store of value.
2. Bitcoin's transaction fees and speed limit its usefulness as a medium of exchange.
3. Bitcoin's limited acceptance prevents it from becoming a standard unit of account.
4. Central banks are exploring the potential of digital currencies, including CBDCs.
5. Regulation of cryptocurrency platforms is crucial for the long-term stability of the market.

Ultimately, whether Bitcoin succeeds as a currency depends on its ability to address these challenges and gain wider acceptance from both consumers and businesses.While Carney's criticism is valid, it doesn't negate the potential of Bitcoin and other cryptocurrencies to play a significant role in the future of finance.

Conclusion

The debate surrounding whether the Bank of England Governor claims Bitcoin has failed as a currency highlights the ongoing tension between traditional financial systems and the burgeoning world of cryptocurrency.While Mark Carney's critique of Bitcoin's volatility, limited use as a medium of exchange, and lack of widespread adoption as a unit of account are valid points, they don't necessarily represent the final verdict on Bitcoin's future.The technology continues to evolve, and its potential role in providing financial inclusion and a hedge against inflation cannot be ignored.Even with the rise of regulated digital assets such as CBDCs, it is unlikely that Bitcoin's decentralised technology will be replaced.

Whether Bitcoin ultimately succeeds as a global currency or finds a niche role remains to be seen.However, the conversation sparked by Carney's comments underscores the importance of understanding the challenges and opportunities presented by cryptocurrency as we navigate the future of finance.Consider doing your own research to stay informed about the latest developments in the crypto space and how they might impact your financial future.What are your thoughts on the future of Bitcoin?Share your opinion in the comments below!