BoE Governor Warns Over Bitcoin and Cryptocurrency, Says BTC Lacks Intrinsic Value

Updated:

Esteemed Governor of the Bank of England (BoE) Andrew Bailey warned UK citizens about the dangers of investing in Bitcoin and cryptocurrency on the May 23 edition of the Jobs of the Future podcast.

Bailey’s warnings come in the aftermath of the crypto market crash, which saw about $500 billion evaporate from the crypto community in May alone. That said, the benchmark cryptocurrency currently trades down by 21% over the past 30 days.

While acknowledging the importance of blockchain technology in the future of finance, the Governor remains antagonistic about Bitcoin being used as a means of payment. Bailey also noted that the BoE was working on a digital currency (CBDC). He explained:

“In terms of payments, I don’t think it will be crypto in a sort of Bitcoin sense of the term. I don’t think that is really a practical means of payment.”

The chief central banker also noted: “What I think is to be determined is, if we are much more likely to be living in a world of digital currency than old fashioned sort of payment methods, precisely what form of digital currency, digital use, becomes the one that becomes the accepted norm.”

Governor of the Bank of England (BoE) Andrew Bailey.

BoE Governor Think Crypto is Dangerous and for Criminals

Asserting that he does not hold any crypto personally or otherwise, Bailey continued: “I am probably not liked by the advocates of Bitcoin because I have said I don’t think it has any intrinsic value.” The BoE Governor added:

“It can have extrinsic value in the sense that people want to own it — people collect all sorts of things — but it doesn’t have intrinsic value.”

Bailey has remained true to his opposition stance on Bitcoin and cryptocurrency for a long while. Last month, he claimed that cryptocurrency creates an “opportunity for the downright criminal.” Earlier last year, he described cryptocurrency as “dangerous.” Bailey has also been one of the vocal opposers of El Salvador’s decision to make BTC a legal tender alongside the US dollar.

 

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.