Andrew Bailey, the governor of the Bank of England, has repeatedly warned the investors about the crypto sector. His recent warning comes after the sudden halt of withdrawals by Celcius. He stressed that the investors must be ready to lose all of their money because cryptocurrencies have no intrinsic value.
The governor of the Bank of England (BOE) has again shared his concerns regarding the cryptocurrencies, but this time in front of the British parliament’s Public Accounts Committee on Wednesday.
When Bailey was asked the question of how the government’s plan to promote financial innovation could potentially clash with the regulators’ duty to protect the consumers, he stated that if they wanted to invest their money into such assets, okay, but they should be ready to lose all of their money.
He further stated that just because cryptocurrencies have extrinsic value may also attract some consumers to buy them. He continued by saying that people value things based on their reasons.
He also opined that cryptocurrencies and the entire crypto sector have no intrinsic value and the recent blow-up in the industry is evidence of it.
Here Bailey referred to the US crypto lender Celcius, which abruptly froze withdrawals. Following a sell-off this weekend, the entire crypto market has been in bad shape since Monday this week.
However, this is not the first time the governor of the Bank of England has spoken against cryptocurrencies. In May, he was reported saying that bitcoin is not a practical means of payment. In April, he stated that cryptocurrencies create ample opportunities for downright criminals.
Going a year in the past, the governor of the Bank of England said last year that cryptocurrencies are incredibly dangerous and investors should avoid them. Subsequently, in March this year, Bailey reiterated that cryptocurrencies pose a risk to the country’s financial stability and ultimately the entire world because of the lack of intrinsic value.
Numerous governors of central banks from around the world are optimistic cryptocurrencies will turn out to be highly beneficial and are making appropriate arrangements for such. On the other hand, certain governors believe it would be disastrous, and they have numerous pieces of evidence to support their predictions.