Mark Carney, Governor of The Bank of England stated that Bitcoin cannot be considered a legitimate currency by “traditional” definitions, The Telegraph reported Monday, Feb. 19.
Carney claimed that Bitcoin doesn’t meet two major requirements of a traditional currency, claiming that Bitcoin is neither a means of exchange, nor a store of value.
Carney said: “It [cryptocurrency] has pretty much failed thus far on… the traditional aspects of money. It is not a store of value because it is all over the map. Nobody uses it as a medium of exchange,” speaking to students of London’s Regent’s University.
Governor Carney admitted that Cryptocurrency’s underlying Blockchain application “may still prove useful” due to its decentralised nature.
He said: “Cryptocurrency’s underlying technology may still prove useful as a way to verify financial transactions in a decentralised way.” Carney said.
The US Internal Revenue Service (IRS), has defined cryptocurrency as a “digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value.” They have been taxing Cryptocurrency as a property since March 2014.