Mark Carney: belief

Transcript context

…As you know, there are truly anonymous forms of crypto, whether we like it or not. How many degrees of freedom do we really have in regulating non-anonymous crypto given that people have the option of switching into anonymous crypto? We can only regulate them as it comes into the formal financial system, but we certainly can regulate anybody who is in the formal financial system and how they dock into that system, a crypto exchange. I’ve long been saying that crypto exchanges should be regulated as other exchanges are and should be subject to the same quality standards and Know Your Customer standards and others. I think the best crypto exchanges absolutely agree with that. Private financial institutions and their interactions between — ultimately, it is interesting how essential much of crypto — that crypto for a decentralized system ultimately needs to come back into the centralized system in order to be a true medium of exchange. Those who have been taking ransomware in crypto likely will ultimately come back into the formal financial system at some point. That’s where the regulation has to catch. If I look at IPCC estimates of the costs of climate change, I see talk of a base case of maybe 5 percent to 6 percent of global GDP, possible risks of up to 20 or maybe 30 percent of GDP. All this you discussed in your book, of course. Given that wide range of estimates, which perhaps will get wider yet, what can central banks usefully do with this information, given that they’re not really special adjudicators of wisdom about climate change?…

Stored transcript either side of the excerpt. The highlighted words are the published quote; the surrounding text is unedited source, never generated.