Bank of England Governor Andrew Bailey has reiterated his warning about investing in crypto after US crypto lender Celsius abruptly froze withdrawals. He stressed that investors should be prepared to lose all of their money, emphasizing that cryptocurrencies have no intrinsic value.
Bank of England Governor Warns About Crypto Following Celsius Withdrawal Freeze
Bank of England (BOE) Governor Andrew Bailey reiterated his concerns about cryptocurrency investment to the British Parliament’s Public Accounts Committee on Monday.
Responding to a question about how regulators’ duty to protect consumers could clash with the government’s plan to promote financial innovation, he was quoted by Reuters as saying:
If you want to invest in these assets, that’s fine, but be prepared to lose all your money.
“People may still want to buy them because they have extrinsic value,” he continued, adding that “people value things for personal reasons.”
The head of the Bank of England warned:
But they have no intrinsic value. This morning we have seen another explosion in a cryptocurrency exchange.
Bailey was referring to US crypto lender Celsius that abruptly freezes withdrawals. Following a massive sell-off over the weekend, the cryptocurrency market was in a bloodbath on Monday.
The governor of the British central bank has repeatedly warned that bitcoin has no intrinsic value. In May, he also said that BTC is not a practical means of payment. In April, he claimed that cryptocurrencies create an “opportunity for the outright criminal.” Last year, he warned that cryptocurrencies are dangerous.
Meanwhile, the Bank of England said in March that crypto assets pose risks to financial stability.
What do you think of the Bank of England Governor Andrew Bailey’s comments? Let us know in the comments section.
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