Bank of England governor warns of risk of losing funds when buying Bitcoin

Cryptocurrencies have no intrinsic value, so investments in them carry significant risk, said Bank of England Governor Andrew Bailey.

According to him, the prefix “crypto” and the word “currency” are incompatible. At the press conference, Bailey noted that the hype around the cryptocurrency market is linked to the external value of this class of assets.

“Buy them, only if you are prepared to lose all your money,” he warned.

When asked about threats to financial stability, the official said that the Bank of England has the ability to respond to any challenges.

Bailey has been a steadfast critic of cryptocurrencies. In March, during parliamentary hearings in the UK, he warned of the risk of losing all funds when investing in Bitcoin.

Earlier at the World Economic Forum in Davos, the head of the Bank of England emphasised that none of the existing digital assets does not have a sustainable model, which would allow it to function as a means of payment in the long term.

Earlier in May, artist Fraz left several messages about Bitcoin in the form of laser projections on the walls of the Bank of England.