Bank of England Governor Andrew Bailey has reiterated his warnings about cryptocurrency investments after US crypto lender Celsius abruptly halted withdrawals. He stressed that investors should be prepared to lose all their money, emphasizing that crypto has no intrinsic value.
Bank Of England Governor Warns About Cryptocurrencies After Celsius Withdrawal Freeze
Bank of England (BOE) Governor Andrew Bailey reiterated his concerns about cryptocurrency investments to the Public Accounts Committee of the British Parliament on Monday.
Responding to a question about how regulators’ duty to protect consumers might clash with the government’s plan to spur financial innovation, Reuters quoted him as saying:
It is okay if you want to invest in these properties, but be prepared to lose all your money.
“People still want to buy them because they have external value,” he adds, “people value things for personal reasons.”
The head of the Bank of England cautioned:
But they do not have intrinsic value. This morning we have seen another setback in the crypto exchange.
Bailey was pointing to US crypto lender Celsius which was abruptly halting withdrawals. After a sell-off over the weekend, the crypto market was in a bloodbath on Monday.
The governor of the British Central Bank has warned on several occasions that bitcoin has no intrinsic value. In May, he also stated that BTC is not a practical means of payment. In April, he claimed that crypto creates “opportunity for downright criminal”. Last year, he warned that cryptocurrencies are dangerous.
Meanwhile, the Bank of England said in March that crypto assets present financial stability risks.
What do you think of Bank of England Governor Andrew Bailey’s comments? Let us know in the comments section below.
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