Bank of England’s Governor Warns About Crypto Amid Bloodbath — ‘Be Prepared to Lose All Your Money’ – Regulation Bitcoin News

Andrew Bailey (the governor of the Bank of England) reiterated his concerns about cryptocurrency investment after U.S. Crypto lender Celsius suddenly stopped withdrawing funds. Investors should expect to lose their entire investment, he said. He also stressed the fact that crypto does not have any intrinsic value.

Bank of England’s Governor Warns About Cryptocurrency Following Celsius’ Withdrawal Freeze

Bank of England (BOE) Governor Andrew Bailey reiterated his concerns about cryptocurrency investing to the British parliament’s Public Accounts Committee Monday.

Responding to a question on how regulators’ duty to protect consumers could clash with the government’s plan to promote financial innovation, he was quoted by Reuters as saying:

These assets can be a good investment option, however, you should expect to lose your entire capital.

“People may still want to buy them because they have extrinsic value,” he continued, adding that “people value things for personal reasons.”

Bank of England Chief warned:

But they don’t have intrinsic value. Another blowup occurred in a cryptocurrency exchange this morning.

Bailey was talking about the abrupt freeze of withdrawals by U.S. cryptocurrency lender Celsius. The crypto market went into a commotion Monday after a weekend sell-off.

On several occasions, the governor of Britain’s central bank warned that bitcoin does not have an intrinsic value. BTC was also declared unpractical as a payment option in May. In April, he claimed that crypto creates an “opportunity for the downright criminal.” Last year, he warned that cryptocurrencies are dangerous.

In March, however, the Bank of England stated that crypto assets pose financial stability risk.

Let us know what you think of Andrew Bailey’s comments. Comment below.

Kevin Helms

Kevin is a graduate of Austrian Economics. He discovered Bitcoin in 2011, and has been an advocate ever since. His main interests are in Bitcoin security, open source systems, network effects, cryptography, and intersections between economics, cryptography, and Cryptography.