Andrew Bailey, the governor of Bank of England, reiterated his caution about cryptocurrency investing following an abrupt freeze by U.S. crypto lender Celsius of withdrawals. He reiterated that investors should be ready to lose all of their money and stressed that crypto does not have any intrinsic value.
The Governor of the Bank of England Warns about Cryptocurrency in Light of Celsius’ Withdrawal Freeze
Andrew Bailey, Governor of the Bank of England (BOE), reiterated Monday his concerns regarding cryptocurrency investing to British Parliament’s Public Accounts Committee.
He was asked by Reuters how the regulators’ duty of protecting consumers could conflict with the government’s plan for financial innovation.
You can invest in these assets if you wish, but be ready to lose everything.
He said, “People may still desire to buy them because of their extrinsic worth,” adding that “people value items for personal reasons.”
Chief of the Bank of England cautioned:
They don’t possess intrinsic value. We have witnessed another collapse in a crypto-exchange this morning.
Bailey was referring U.S. crypto lender Celsius abruptly freezing withdraws. The crypto market went into a bloodbath Monday after a weekend sell-off.
On several occasions, the governor of the British central banking has stated that bitcoin does not have an intrinsic value. He also stated that Bitcoin was not a viable method to pay. He claimed in April that crypto is dangerous.
In March, the Bank of England stated that crypto assets pose financial stability risk.