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20VC: Former Governor of the Bank of England, Mark Carney on Why "Only the Niche Will Survive" in Crypto, How Governments and Central Banks Retain Control in a World of Decentralised Finance & The Winners and Losers in Crypto Exchanges and NFTs

Jan 10, 2022

Mark Carney, former Governor of the Bank of England, shares his extensive finance background and commitment to sustainability. He discusses how governments can maintain control amid the rise of decentralized finance and predicts the future of central bank digital currencies. Carney also analyzes the competitive landscape of crypto exchanges and NFTs, highlighting potential winners and losers in this evolving market. His insights emphasize the need for a balanced approach to innovation and equity in finance.

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ANECDOTE

Nikkei Crash Anecdote

Mark Carney witnessed Japan's Nikkei crash in 1990 while working at Goldman Sachs in Tokyo.
32 years later, it barely reached its pre-crash peak, highlighting that markets can decline for extended periods.

ADVICE

Seek Clarification

If a financial explanation seems unclear, ask for clarification.
If they can't explain it simply, they likely don't understand it themselves.

INSIGHT

Centralization of Innovations

Private monetary innovations eventually reconnect to central banking systems.
Examples include banknotes and fractional reserve banking, which require central bank oversight.

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Mark Carney is Vice Chair of Brookfield Asset Management and Head of Transition Investing. Prior to Brookfield, Mark served as the Governor of the Bank of England from 2013 to 2020, and prior to that as Governor of the Bank of Canada from 2008 until 2013. Mark was also Chairman of the Financial Stability Board from 2011 to 2018. Mark is a long-time and well-known advocate for sustainability and is currently the United Nations Special Envoy for Climate Action and Finance. If that was not enough, Mark serves on numerous other boards including Stripe, Bloomberg Philanthropies and the Foundation Board of the World Economic Forum to name a few.

In Today’s Episode with Mark Carney You Will Learn:

1.) How Mark made his entrance into the world of finance and came to the role of Governor of the Bank of Canada? How did that role lead to his becoming Governor of the Bank of England? How did seeing multiple booms and busts impact Mark's investing mindset?

2.) Governments, Central Banks and Regulation:

How do governments and central banks retain control in a completely decentralized financial world?
Can traditional currencies and digital currencies peacefully co-exist?
What are Mark's predictions for central bank digital currencies?
How does Mark expect governments and central banks to regulate digital currencies in the coming years?

3.) The Winners and Losers:

What does the future hold for crypto exchanges?
How do competitors for digital gold perform?
Why does Mark believe in crypto "only the niche will survive"?
What does the rise of Defi mean for traditional banks? What will determine those that survive?
What does Mark mean when he says the winners will decide "what is my interface with this crypto world?''

4.) The Future of NFTs:

Do NFTs do more to help or to harm income inequality?
How does Mark see the future for the development and experimentation of NFTs?
Who are the winners and losers in the next decade for NFTs?
How does Mark feel about the pause between productivity gains and real wage benefits that exist today?

Item’s Mentioned In Today’s Episode with Mark Carney

Mark’s Favourite Book: Arcadia by Tom Stoppard