Bank of England’s Andrew Bailey Warns Bitcoin Has No Intrinsic Value – The governor of the Bank of England, the British central bank, claims that bitcoin has no intrinsic value and that it is unsuitable for use as a payment method. After the crypto market plunged, he issued a warning.
On Monday’s Jobs of the Future podcast, Bank of England Governor Andrew Bailey issued a warning regarding bitcoin and cryptocurrency. His warning came after the cryptocurrency market dropped by over $500 billion this month. Bitcoin, the most popular cryptocurrency, has lost more than 25% of its value in the last 30 days.
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While acknowledging the importance of blockchain, the underlying technology of cryptocurrencies, Bailey remains skeptical of bitcoin as a payment method. He also stated that the Bank of England is considering creating its own digital currency.
He proceeded, saying:
“In terms of payments, I don’t believe it will be crypto in the same sense as bitcoin. That does not seem to be a practical method of payment.”
“What I think needs 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 ways, just what form of digital currency, digital use, becomes the accepted norm,” the central bank governor added.
“I am probably not liked by the promoters of bitcoin because I have said I don’t believe it has any intrinsic value,” Bailey added, while confirming that he does not own any crypto.
“It can have extrinsic value in the sense that people want to acquire it — people collect all kinds of things,” he explained, “but it does not have intrinsic value.”
Bailey has never been a supporter of bitcoin or other cryptocurrencies. Last month, he claimed that cryptocurrency provides an “opportunity for the downright criminal.” He called cryptocurrencies “dangerous” in March of last year. Bailey expressed concerns about El Salvador adopting bitcoin as official money alongside the US dollar in November.
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His comments echo Christine Lagarde’s Sunday statement that cryptocurrency is “based on nothing.” “There is no underlying asset to operate as an anchor of safety,” the president of the European Central Bank stated. Lagarde said in May of last year that cryptocurrency has no fundamental value and that investors should expect to lose all of their money.
