Bank of England Governor Andrew Bailey questioned whether the first cryptocurrency holds any intrinsic value. This is according to Reuters.
The central banker reaffirmed his negative stance toward the asset during a public session, saying that in Bitcoin it is hard to discern what we would call ‘intrinsic value’.
“It may have external value in the sense that people want to obtain it,” Bailey said.
He warned against using Bitcoin as a means of payment due to its high volatility and an ‘undefined value’.
In March, Bailey spoke about the lack of a guarantee of Bitcoin’s value. Then he warned that investing in cryptocurrency requires a willingness to lose all funds.
Earlier, at a Brookings Institution virtual conference in September, the central bank governor stated that cryptocurrency assets ‘are not suited for the world of payments’. In his view, stablecoins may offer more opportunities.
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