A picture taken on February 6, 2018 shows a visual representation of the digital crypto-currency Bitcoin, at the “Bitcoin Change” shop in the Israeli city of Tel Aviv. / AFP PHOTO / JACK GUEZJACK GUEZ/AFP/Getty Images

 

Bank of England Governor Mark Carney has launched a scathing attack on cryptocurrencies such as Bitcoin and called for regulation to make sure they abide by the ‘same standards as the rest of the financial system’. In a speech delivered to the inaugural Scottish Economics Conference in Edinburgh,

Mr Carney branded cryptocurrencies a failure’ and said they exhibit the ‘classic hallmarks of bubbles’.

He said: “The prices of many cryptocurrencies have exhibited the classic hallmarks of bubbles including new paradigm justifications, broadening retail enthusiasm and extrapolative price expectations reliant in part on finding the greater fool. ‘

At present, crypto-assets raise a host of issues around consumer and investor protection, market integrity, money laundering, terrorism financing, tax evasion, and the circumvention of capital controls and international sanctions.’

His comments come as Bitcoin’s value continues to gyrate wildly, having rocketed to nearly $20,000 late last year before plunging and settling at $10,890 on Friday.

Britain’s Bank of England Governor, Mark Carney, holds the new £10 note featuring Jane Austen, at Winchester Cathedral, in Winchester, Britain July 18, 2017. REUTERS/Chris J Ratcliffe/Pool

 

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A host of regulators including in South Korea, China, Russia and India have already expressed concern about Bitcoin, while Germany’s Bundesbank has also called for global regulation.

 

 

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