Bank of England Advisor Criticizes Bitcoin and Crypto Assets Due to Failing at Basic Financial Tests

Although digital assets have been expanding all over the world during the last years, there are several individuals and experts that believe that these cryptocurrencies are worthless or will just fail. Huw van Steenis, the senior adviser to Bank of England Governor Mark Carney said that legacy banks are not worried about cryptocurrencies because they do not have value. He went on saying that digital assets fail the fundamental tests of financial services.

During an interview with Bloomberg, he mentioned these things about virtual currencies. Indeed, he said that cryptocurrencies are not a great unit of exchange because they do not hold any value and they are slower than traditional payments.

This is similar to what the financial analyst Gary Shilling said about Bitcoin. He said during a conversation with CNBC that the crypto industry is opaque and that Satoshi Nakamoto has never been revealed. Furthermore, he says he is shorting Bitcoin because it is a ‘grand Ponzi scheme.’

Huw van Steenis said that banks and financial institutions are vigilant about new technologies since they want to keep being competitive. However, they are not worried about cryptocurrencies being able to challenge banks’ dominance. Nevertheless, he mentioned that his top priority is to make the United Kingdom a ‘vibrant centre’ for fintech companies in the coming years.

Back in March 2018, the Governor of the Bank of England, Mr. Mark Carne said that the cryptocurrency industry does not threaten the stability of the global economy. Thus, this shows that there are several opinions regarding cryptocurrencies among top officials in one of the most important financial institutions around the world.

In a letter to the G20 finance ministers and central bank governors, he wrote:

“The FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time. This is in part because they are small relative to the financial system. Even at their recent peak, their combined global market value was less than 1% of global GDP.”

Regulatory agencies are starting to take more active stances toward virtual currencies. The intention is to control the market and regulate the industry as it continues to expand.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Bitcoin Exchange Guide News Team
B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

DeFi Growth & Stablecoin Surge Most Bullish Crypto Development: DCG State of Crypto 2020 Survey

39% of the respondents that involve 150 portfolio companies see DeFi as the most bullish crypto development of 2020, as per the DCG Founders...

Non-Custodial Bitcoin Exchange, Hodl Hodl, Launches Lending Service Without KYC

Hodl Hodl, a non-custodial Bitcoin exchange, is launching a KYC-free lending product for its customers. The exchange claims that its lending product would be...

Total Value Locked in Harvest Finance Surpasses $1 Billion, Up 366,200% Since September

Decentralized platform Harvest Finance that provides users a way to farm assets for the highest yields now has more than a billion dollars in...

Strong Institutional Demand for Bitcoin, CME Becomes Second Largest BTC Futures Market

Bitcoin's price made a big shift this week as the bulls gained control of the market and pushed it past $13,000. A similar shift has...

PoolTogether's ‘No Loss' Gambling Platform Utilizes Chainlink’s VRF on Ethereum to Select Winners

Chainlink announces its verifiable random function on the Ethereum mainnet, bringing a host of benefits to the decentralized platform. PoolTogether, a gamified savings platform...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today