Cryptocurrencies are failing to fulfil their role as “money,” believes Bank of England Governor Mark Carney.

Speaking at the inaugural Scottish Economics Conference, Edinburgh University, Carney spoke at length on the future of money. He also discussed cryptocurrencies and their role as money.

“The long, charitable answer is that cryptocurrencies act as money, at best, only for some people and to a limited extent, and even then only in parallel with the traditional currencies of the users. The short answer is they are failing,” Carney said.

To that end, he pointed out that cryptocurrencies are poor stores of value, inefficient media of exchange, and virtually non-existent units of account.

“Thus far, however, rather than such a sober assessment of future prospects, the prices of many cryptocurrencies have exhibited the classic hallmarks of bubbles including new paradigm justifications, broadening retail enthusiasm and extrapolative price expectations reliant in part on finding the greater fool,” he said.

Regarding policy response to cryptocurrencies, Carney said that the BoE’s FPC is currently considering the risks posed to UK financial stability. In addition, the Financial Stability Board (FSB) will report to the G20 in Argentina later this month on the financial stability implications of crypto-assets.

“The time has come to hold the crypto-asset ecosystem to the same standards as the rest of the financial system. Being part of the financial system brings enormous privileges, but with them great responsibilities,” he said.