Portrait of Mark Carney
Politician · policy
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Mark Carney on Crypto

Pro-CBDC critic of Bitcoin (strong)

TL;DR

Mark Carney criticizes decentralized cryptocurrencies like Bitcoin while strongly supporting Central Bank Digital Currencies (CBDCs) as superior monetary tools.

Key Points

  • He called the fixed supply of Bitcoin a 'serious deficiency' and suggested recreating a global gold standard like it would be a 'criminal act of monetary amnesia' in 2018.

  • As Chair of the Financial Stability Board (FSB) in March 2018, he indicated that crypto-assets did not yet pose a risk to global financial stability due to their small scale.

  • He has advocated for Central Bank Digital Currencies as a tool to increase financial inclusion and combat economic crime, viewing them as an innovation worth pursuing.

Summary

Mark Carney, the former Governor of the Bank of England and Bank of Canada, maintains a position that is fundamentally skeptical of decentralized cryptocurrencies, particularly Bitcoin. He has argued that Bitcoin fails as a reliable form of money, citing its extreme volatility, poor store of value properties, and limited utility as a medium of exchange. His criticism is rooted in the inherent risks and lack of intrinsic value in assets like Bitcoin, which he previously characterized as an "equity-type risk" rather than a systemic financial threat due to their limited integration into the formal system. He has also been quoted as saying cryptocurrencies are "failing" as money.

In contrast to his skepticism toward decentralized crypto, Carney has shown strong support for Central Bank Digital Currencies (CBDCs), viewing them as a way to leverage digital technology for payments while retaining state control and stability. He has suggested that a CBDC, potentially a "Synthetic Hegemonic Currency" backed by a basket of national currencies, could even serve as an alternative to the U.S. dollar as the global reserve currency. This preference indicates a stance that favors regulated, state-backed digital money over permissionless, decentralized alternatives, suggesting he believes central authorities must retain control over the financial system's architecture.

Key Quotes

Why does Mark believe in crypto “only the niche will survive”?

Frequently Asked Questions

Mark Carney is generally critical of decentralized cryptocurrencies like Bitcoin. He views them as failing as true money due to extreme volatility and their poor performance as a store of value or medium of exchange. While acknowledging the role of underlying technology in driving payment innovation, his core position is one of skepticism regarding permissionless crypto assets.

Yes, Mark Carney strongly supports the concept of Central Bank Digital Currencies. He has proposed that a state-backed digital currency could potentially replace the U.S. dollar as the global reserve currency. He sees CBDCs as a way to leverage digital efficiency while ensuring financial stability and combating illicit finance.

While his fundamental skepticism toward decentralized crypto remains, the context has changed since his initial sharp criticisms. Carney has acknowledged the disruptive potential of stablecoins like Libra and the underlying blockchain technology itself. However, his main evolution appears to be a stronger push for state-controlled digital currency solutions rather than an endorsement of decentralized alternatives.