Mark Carney to extend stay as Bank Of England governor, cryptocurrency very unlikely to benefit

Philip Hammond has confirmed that Bank Of England governor Mark Carney will be staying his job a little longer…

Mark Carney is to stay on as governor of the Bank Of England, thanks to a just-announced extension to his tenure.

Carney was due to stand down from his role in 2019, but the UK Chancellor of the Exchequer, Philip Hammond, has announced to MPs that Carney has agreed to extend his deal until the end of January. That’s a seven month extension, and the reason for the move is to cover the UK’s exit from the European Union. Brexit is due to take place on 29th March of next year, and thus Carney has agreed to give some continuity, to help build confidence in the event of a hard Brexit.

The ramifications for cryptocurrency are unlikely to be helpful. Carney, during his tenure as governor, has hardly been a passionate advocate. More someone standing on the sidelines with a very cautious look on their face.

Carney has previously expressed concern about crypto assets being used to shield “illicit activity”, and notably gave a speech in March declaring “the time has come to hold the crypto-asset ecosystem to the same standards as the rest of the financial system”.

Earlier in the year he said, too, that Bitcoin had “pretty much failed” as a currency. More on all of that here.

Whilst Carney’s contract extension is independent of cryptocurrency, it’s hardly going to be seen as terrific news by the industry. That said, the UK economic is likely to be facing more pressing matters over the next 12 to 18 months, hence the Chancellor has made his announcement now.