Andrew Bailey, Bank of England Governor has warned crypto assets could be used as a payment method for those who wish to engage in criminal activity.
Andrew Bailey, Bank of England Governor, Sees Crypto As A Helper For Criminal Activities
Andrew Bailey (the governor of Bank of England) stated that crypto currency is facilitating illegal activities during an online Q&A session organised by British central banks. His quote was:
The advent of digital means of payment, and in particular crypto assets, I’m afraid that the evidence suggests … that it is providing another means of payment for people who want to conduct criminal activity.
At several times, Governor Bailey has spoken out against cryptocurrency in general. He said in May: “I’m skeptical about crypto-assets, frankly, because they’re dangerous and there’s a huge enthusiasm out there.”
He also stated that cryptocurrencies “have no intrinsic value.” However, the Bank of England governor added that it does not mean people do not put value on them, noting that “they can have extrinsic value.” Nonetheless, Bailey emphasized: “I’m going to say this very bluntly again. Buy them only if you’re prepared to lose all your money.”
Not only is the Bank of England Governor concerned about cryptocurrency being used for illicit purposes, Christine Lagarde (CEO of the European Central Bank) stated in May that cryptocurrencies can be used to launder money.
Janet Yellen, U.S. Treasury Secretary has spoken several times about the use of crypto in illegal financing. She stressed in February the need for crypto regulation to prevent bitcoin and other cryptocurrencies from being used in illegal transactions.
Furthermore, U.S. President Joe Biden said in October: “The United States will bring together 30 countries to accelerate our cooperation in combating cybercrime, improving law enforcement collaboration, stemming the illicit use of cryptocurrency, and engaging on these issues diplomatically.”
What do you think about the Bank of England governor’s warning? Leave your comments below.
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