Bank of England’s Andrew Bailey Warns Bitcoin Has No Intrinsic Value, Not a Practical Means of Payment – Regulation Bitcoin News

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The governor of the Bank of England, the British central bank, says bitcoin has no internal value and the cryptocurrency is not suitable as a practical means of payment. His warning came after the crypto market plunged.

Andrew Bailey on Bitcoin and Cryptocurrency

Bank of England Governor Andrew Bailey has warned of bitcoin and cryptocurrency in the Jobs of the Future podcast, released on Monday.

His warning came after the crypto market plunged to near $ 500 billion this month. Bitcoin, the largest cryptocurrency, has fallen more than 25% in the past 30 days.

Accepting that blockchain, the underlying technology of cryptocurrencies, is important, Bailey is unconvinced about bitcoin as a means of payment. He added that the UK’s central bank is looking at its own digital currency.

He continued:

As for payments, I don’t think it’s going to be cryptic in the kind of bitcoin sense of the term. I don’t think that’s a really practical means of payment.

The governor of the central bank said: “What I am trying to say is that if we are more likely to live in a world of digital currency than outdated payment methods, what kind of digital currency, digital use, is becoming. standard. ”

Confirming that he himself does not hold a crypt, Bailey said:

I’m probably not liked by the proponents of bitcoin because I said I don’t think it has any internal value.

“It may have external value in the sense that people want to own it – people collect all sorts of things – but it has no internal value,” he noted.

Bailey has never been a fan of bitcoin or crypto. He said last month that a crypto creates “an opportunity for the all-criminal.” In March last year, he said cryptocurrencies were “dangerous”. In November, Bailey expressed concern about El Salvador adopting bitcoin as a legal tender along with the U.S. dollar.

His comments echo what Christine Lagarde said on Sunday that crypto is “based on nothing”. The president of the European Central Bank (ECB) added: “There is no underlying asset to act as a security anchor.” In May last year, Lagarde similarly said that crypto has no internal value, and investors should be prepared to lose all their money.

What do you think of the comments from the British central bank governor? Let us know in the comments section below.

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Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection between economics and cryptography.

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