Bank of England Executive: Bitcoin Fails the ‘Basic Tests of Financial Services’


Bank of England executive Huw van Steenis throws FUD at Bitcoin, saying it fails the “basic tests of financial services.”

If there’s one thing that advocates of Bitcoin are used to, it’s seeing a lot of FUD (fear, uncertainty, and doubt) thrown at the cryptocurrency ecosystem over the years. Many in the traditional financial sphere have long expressed antagonism towards cryptocurrencies, although many have quietly changed their tune as their firms start to dive into the blockchain/crypto space in order to grab a hefty slice of the economic pie. However, there are still a number of nocoiners spouting their views, and another one recently popped off.

More FUD at Bitcoin

The latest to throw shade at the world’s foremost cryptocurrency is Huw van Steenis, a senior adviser to Mark Carney, the governor of the Bank of England (BoE). The executive spoke to Bloomberg while at Davos, and he’s definitely not a fan of crypto.

Another Bank of England executive throws FUD at Bitcoin.

In the interview, he said:

I’m not so worried about cryptocurrencies. They fail the basic tests of financial services. They’re not a great unit of exchange, they don’t hold value, and they’re slower.

It looks like Huw van Steenis is a good fit for the Bank of England. Mark Carney has a known distaste for virtual currencies. Van Steenis is fully embedded in the traditional financial world as he used to work at Schroders and Morgan Stanley. He joined the Bank of England last year and is now leading a review of the future of finance.

Ignoring New Advances

Such attitudes are, sadly, common among many of those in the financial world. However, they fail to take into account ongoing innovations that are designed to greatly speed up and enhance the Bitcoin (and others) blockchain. The most notable example is the Lightning Network, which now counts 5,611 nodes, an increase of 17.73 percent.

Lightning Network

It is interesting that Huw van Steenis throws FUD at Bitcoin but is concerned with how the BoE will regulate the new technology firms entering the banking system. Of these new firms, he says:

What I love when meeting with Fintechs is their obsession with customers. The challenge is will they get customers before the traditional banks can innovate.

It’s a quixotic conundrum as he disses cryptocurrency but wants to bring fintechs who are being fueled by them into the banking fold. It’s like ordering an apple pie but telling them to leave off the crust. You can’t discount one aspect of the cryptocurrency/blockchain ecosystem while celebrating another, unless you choose to be willfully obtuse.

What do you think of the latest Bitcoin FUD coming from this Bank of England executive? Let us know in the comments below.

Images courtesy of Pixabay.


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