Mark Carney, the current prime minister of Canada, has made headlines for his stance on virtual currencies like Bitcoin. In the past, he has expressed his disapproval of recreating a virtual global gold standard, stating that it would be a “criminal act of monetary amnesia.”

Carney’s statement has sparked a debate among economists and cryptocurrency enthusiasts. Some argue that a virtual gold standard, similar to Bitcoin, could bring stability to the volatile world of digital currencies. Others believe that it would be a step backwards and could potentially harm the global economy.

For those unfamiliar with the concept, a gold standard is a monetary system where the value of a country’s currency is directly linked to a specific amount of gold. This system was widely used in the past, but it was abandoned by most countries in the 20th century due to its limitations and the rise of fiat currencies.

Bitcoin, on the other hand, operates on a decentralized system, with no central authority controlling its value. Its value is determined by supply and demand, making it highly volatile. Some argue that a virtual gold standard, backed by a finite amount of Bitcoin, could bring stability to the cryptocurrency market.

However, Carney believes that such a move would be a mistake. He argues that it would be a “criminal act of monetary amnesia” to go back to a system that has been abandoned for decades. He also points out that Bitcoin’s value is not backed by any physical asset, making it a risky choice for a global standard.

While the debate continues, it is clear that Carney’s stance on virtual currencies has raised important questions about the future of digital currencies and their role in the global economy. As the world becomes increasingly digital, it is crucial to carefully consider the potential consequences of implementing a virtual gold standard. Only time will tell if Carney’s warning will be heeded or if the world will see a resurgence of the gold standard in a new, virtual form.