Mark Carney, Bank of England Governor: Bitcoin poses no threat to economy

The head of the Bank of England shares the views of both the current Federal Reserve chair and the nominee we heard at the end of November. Mark Carney, BoE governor, stated about Bitcoin: “At present, we don’t view it as a financial stability issue”.

He explains this by telling that the market capitalization of all cryptocurrencies combined still does not exceed even one corporation - Apple, which capitalization is more than two times bigger than the whole coin-related market. The Fed chair and the nominee for this position gave exactly the same reason in the past, though not mentioning Apple.

This statement comes together with the notion that the idea of bank-issued and state-issued cryptocurrencies might sound interesting, but there are some fundamental problems which might hamper the execution of related plans.

Meanwhile in Russia, Alexey Moiseev, Deputy Finance Minister, explained what backs Bitcoin and what can bring its price down: he quite prudently noted that the price turmoil might happen in case mining apparatus becomes faster in a short period of time and explained the basics of mining algorithm, although not without mentioning the “pyramid elements”. All in all, this is a real progress of the Russian officials’ understanding of Bitcoin, as previously they did not mention the real factors why Bitcoin is so expensive.