The Future of Money Mark Carney Governor of the Bank of England 2018 Scottish Economics Conference Delivered at Bloomberg HQ, London
The three functions of money Store of value Medium of exchange Unit of account
Chancellor on brink of second bailout for banks The Times, 3 Jan 2009
The volatility of Bitcoin Daily change (per cent) 50 50 50 50 40 40 40 40 30 30 30 30 Bitcoin/US dollar 20 20 20 20 10 10 10 10 0 0 0 0 Sterling/US dollar -10 -10 -10 -10 -20 -20 -20 -20 -30 -30 -30 -30 -40 -40 -40 -40 -50 -50 -50 -50 -60 -60 -60 -60 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 Sources: The BitStamp exchange, via: http://httpbitcoincharts.com and Sterling/US Dollar calculated using the 'GBPUSD Currency' Bloomberg Ticker
The volatility of Bitcoin December 2017 Today £500 £1,000 Today September 2017 £1,000 £3,000
Relative cost of payments… £40 £2 19p 8p 1.5p Online Bitcoin Cash Cards Bitcoin Dec. 2017 Feb. 2018
Pointing to the Future • Money and payments adjusting to decentralised peer-to-peer interactions • Possibilities for technologies to transform the efficiency, reliability and flexibility of payments • Questions on central bank digital currencies
Electronic peer-to-peer Payment services Non-bank PSPs access RTGS N transactions E Better payments messaging, Innovation in personal and Customer relationship W richer data collection business offerings Improved interoperability Faster, safer, cheaper Retail and commercial banking cross-border cross-border payments R T G New forms of securities Improved accuracy, efficiency Wholesale banking, markets settlement and security of processes S Wholesale payments, clearing and Improved foundation for all RTGS renewal settlement infrastructure UK payments
The Future of Money
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