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Bank of England Addresses Cryptoworld’s Pressing Issues
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Bank of England Addresses Cryptoworld’s Pressing Issues

by John M.March 2, 2018

The saga around cryptocurrencies continues and a new chapter has been opened. Regulation has seems to be omnipresent. From wary US hawks to weary European financial mastodons. The whole world is agog with the news. South Korea and Japan are positively trying to stay clear of over-scrutinising a popular industry, but they are also cognizant of their responsibility as custodians of citizens’ well-being.

A new watchdog has been summoned in the house of crypto regulation. Enter Bank of England Governor Mark Carney who has called this week for more regulation in the sector. His case? Regulate illegal activities when it comes to cryptocurrencies.

Mr Carney’s speech on Friday was marked by several important statements, including that “The time has come to hold the crypto-assets ecosystem to the same standards as the rest of the financial system.”

Mr Carney also sought to dissipate fears that cryptocurrencies may be posing a risk to the financial stability of economies around the world. However, he acknowledged that as more people were beginning to invest, that subtle balance could be upset.

Mr Carney’s account was well-balanced, offering to regulate the cryptocurrencies so that illegal activities may be traced to their sources rather than opposing them outright and calling for a ban as China has done.

He explained that the protection of the financial system ought to be paramount when regulators are bickering over legislation.

The World of Cryptocurrencies

If the world of crypto-currencies have been enjoying a level of nonchalance from authorities, that is about to change slightly.

Bank of England Govern Mark Carney has contributed a major point to the already piling. Mr Carney is adding an important aspect to the regulation. Instead of scaremongering, he is dedicating himself to one specific issue – putting the crack on illegal activities linked to the industry.

Carney is probably against the idea to ban cryptocurrencies and so his words would suggest. He address an issue in a meaningful way. If these chunks of digital gold continue to be out there without any sensible regulation, then chances are that some actual work could be done on bringing stability to the sector.

Mr Carney’s assessment of a cryptocurrency that is used by a growing number of people and still peopled by nefarious characters is accurate and spot-on. In order for the currency to gain acceptance, it will have to break free from the stigma of the past which sends it to the fraternity of shabby affairs.

Fighting the Good Fight

Even well-meaning investors who dabble in cryptocurrencies are now coming under pressure. China was set to open a vibrant network of cryptocurrencies and it ended up mostly shutting companies down.

China’s reaction is not bewildering in the slightest. The government likes to exercise a strong control over everything, and while they can be faulted for a lot, they know how to protect their nation’s interests.

Still, Mr Carney had something in favour to say. Bitcoin and the technology on which it is based can make substantial contributions to how we trade goods and send money across borders.

The recent spate of attacks definitely does not build the case for a future where cryptocurrencies are secure assets, but in all honesty, the hacking of coin exchanges and running of Ponzi schemes is a mix of shortsightedness and greed, rather than direct faults of the underpinning software.

Mr Carney concluded by saying that if there was a will, there would be a way. And this makes us upbeat about the future of these assets.

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John M.

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