Bank of England Governor reiterates Crypto has ”No Intrinsic value” as Market Crashes

Key Takeaways

  • Governor’s latest comments come as the crypto economy faces one of its biggest slumps
  • The Bank of England Governor had earlier stated that BTC is not a practical means of payment.

Bank of England Governor Andrew Bailey reiterates his stance toward digital assets, stating that they have no” intrinsic value” He made the latest comments while addressing the UK Parliament Committee.

” Crypto assets have no intrinsic value. This morning, we have seen another blow-up in a crypto exchange”. The Governor was referring to the recent slump in the crypto ecosystem. The market capitalization for crypto fell by around 12% to nearly $970 billion within a span of a few hours. In the recent bleeding, the largest digital token Bitcoin, also over 10% to $24,548, the lowest in 18 months. The lending platform Celsius suspended transfers and withdrawals while its CEL token sank 53% to 18 cents.

Bailey further, in his speech to the public accounts committee (PAC) on Monday, teased that if anyone wants to invest in these(Digital) assets, be prepared to lose all your money. He also stated that artificial intelligence tools (AI) could potentially be a means to create automatic controls on suspicious cryptocurrencies. Bailey added that many bad actors exist in crypto world, and AI could be harnessed to remove them out instantaneously.

This is not the first time Bailey has openly bashed cryptocurrencies. The Bank of England Governor Bailey has always been a staunch critic of digital assets. He had earlier stated that BTC is not a practical means of payment. In late 2021, the Bank of England Governor also asked U.K. banks to be “especially cautious” about holding volatile crypto assets until regulators put new rules in place. In March 2021, the Governor stated that cryptocurrencies are “dangerous.” In November, he further voiced concerns about El Salvador adopting bitcoin as legal tender alongside the U.S. dollar.

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Saniya Raahath

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