Bank of England (BoE) Governor Mark Carney claims bitcoin has failed as a currency.
Speaking at a Regent´s University function in London on Monday evening, Carney said bitcoin had “pretty much failed thus far on…the traditional aspects of money.”
Citing its high volatility, the BoE governor pointed to signs that the cryptocurrency was not readily being used to buy goods and services in the way a conventional currency is nor was it a store of value in the way the major developed fiat currencies can be.
“It is not a store of value because it is all over the map. Nobody uses it as a medium of exchange,” said Carney.
Nevertheless, bitcoin traded up nearly 4% on Tuesday, at around $11,518.
Bitcoin has continued to recover lost ground this month after having sold off sharply in January.
On Tuesday, cryptocurrencies appeared to be receiving support from comments by the head of South Korea´s financial regulator, indicating it would likely tolerate cryptocurrency trading with some caveats rather than imposing a complete ban as had been feared.
Litecoin was one of the best performers in the crypto market, up by around 11% on Tuesday´s session as at 1625 GMT.
Sentiment on cryptos in general was also boosted by news that Venezuela had launched a new crypto known as the petro.
“The difference with this crypto-currency is that the government says it is backed by one barrel of oil, so it's a way for the Venezuelan government to say that this currency has some extra real-world value,” said Venezuelan President Nicolás Maduro.