SLIDE 1
The Future of Money
Mark Carney Governor of the Bank of England
2018 Scottish Economics Conference Delivered at Bloomberg HQ, London
The Future of Money Mark Carney Governor of the Bank of England - - PowerPoint PPT Presentation
The Future of Money Mark Carney Governor of the Bank of England - - PowerPoint PPT Presentation
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
SLIDE 2
SLIDE 3
The three functions of money
Store of value Medium of exchange Unit of account
SLIDE 4
Chancellor on brink of second bailout for banks
The Times, 3 Jan 2009
SLIDE 5
The volatility of Bitcoin
- 60
- 50
- 40
- 30
- 20
- 10
10 20 30 40 50 2012 2013 2014 2015 2016 2017 2018
Sources: The BitStamp exchange, via: http://httpbitcoincharts.com and Sterling/US Dollar calculated using the 'GBPUSD Currency' Bloomberg Ticker
- 60
- 50
- 40
- 30
- 20
- 10
10 20 30 40 50 2012 2013 2014 2015 2016 2017 2018
- 60
- 50
- 40
- 30
- 20
- 10
10 20 30 40 50 2012 2013 2014 2015 2016 2017 2018
- 60
- 50
- 40
- 30
- 20
- 10
10 20 30 40 50 2012 2013 2014 2015 2016 2017 2018 Daily change (per cent) Sterling/US dollar Bitcoin/US dollar
SLIDE 6
Today
£500 £1,000
The volatility of Bitcoin
December 2017 September 2017
£1,000
Today
£3,000
SLIDE 7
Relative cost of payments…
Cash
1.5p
Cards
8p 19p £2
Online Bitcoin
- Feb. 2018
Bitcoin
- Dec. 2017
£40
SLIDE 8
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
SLIDE 9
Wholesale payments, clearing and settlement infrastructure
Improved foundation for all UK payments Better payments messaging, richer data collection Improved interoperability cross-border New forms of securities settlement RTGS renewal Non-bank PSPs access RTGS
N E W R T G S
Payment services
Electronic peer-to-peer transactions
Customer relationship
Innovation in personal and business offerings
Retail and commercial banking
Faster, safer, cheaper cross-border payments
Wholesale banking, markets
Improved accuracy, efficiency and security of processes
SLIDE 10