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Mentioning that "some of the underlying technologies are exciting", Carney said that this might lead to a better financial stability, reliable and efficient payment services.

The Bank of England's Financial Policy Committee is now considering the risks posed to United Kingdom financial stability by the proliferation of cryptocurrencies.

JP Morgan chief Jamie Dimon once branded the digital currency "a fraud" and said it was only useful to murderers, drug dealers and rogue nations like North Korea.

Carney believes cryptocurrencies are "poor short-term stores of value" that have "exhibited classic hallmarks of bubbles" with "neither intrinsic value nor any external backing".

While the price of bitcoin has fallen significantly from the dramatic highs of previous year, supporters remain bullish.

Carney's call for regulation for the sector was welcomed by a well-known cryptocurrency investor. "Anarchy may reign on the dark web, but in the United Kingdom it's just a song that your parents used to listen to", Carney said, in a speech which will be seen as a major intervention by a top global regulator. He favoured regulation rather than an outright ban: "A better path would be to regulate elements of the crypto-asset ecosystem to combat illicit activities, promote market integrity, and protect the safety and soundness of the financial system", he said.

Meanwhile, let's not forget that the World Gold Council recently acknowledged that cryptocurrencies pose a threat to central banks.

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"A general objective CBDC could mean a much greater role for central banks in the financial system", Carney said.

It came just a week after the city watchdog, the Financial Conduct Authority, issued a warning about the firm.

Of course, Carney doesn't want to be 'the bad guy, ' and thus makes sure to reminds everyone that blockchain is good, as long as it plays by the rules of governments and financial institutions.

Carney said that approach risked stifling potentially big opportunities to streamline payments systems, making it easier for example for people in a pub to split the cost of a round of drinks without involving the traditional banking system.

"Even if the current generation is not the answer, it is throwing down the gauntlet to the existing payment systems".

However, the distributed-ledger technology underlying cryptocurrencies did have potential for improving cash settlement in the banking system and other asset transactions, he added.

Distributed-ledger technology could also be used for tax and medical records, and business supply chains, though a central bank operated digital currency, he said.