Bank of England’s Governor Warns About Crypto Amid Bloodbath — ‘Be Prepared to Lose All Your Money’
The governor of the Bank of England, Andrew Bailey, has reiterated his warning about cryptocurrency investing after U.S. crypto lender Celsius abruptly froze withdrawals. He stressed that investors should be prepared to...
Archive context
Older archive item. Useful for background and entity history, but not a fresh market-moving signal.
The governor of the Bank of England, Andrew Bailey, has reiterated his warning about cryptocurrency investing after U.S. crypto lender Celsius abruptly froze withdrawals. He stressed that investors should be prepared to lose all their money, emphasizing that crypto has no 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:
If you want to invest in these assets, okay, 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 Bank of England chief cautioned:
But they don’t have intrinsic value. This morning we have seen another blow-up in a crypto exchange.
Bailey was referring to U.S. crypto lender Celsius abruptly freezing withdrawals. Following a sell-off over the weekend, the crypto market was in a bloodbath Monday.
The governor of the British central bank has warned on several occasions 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 crypto creates an “opportunity for the downright criminal.” Last year, he warned that cryptocurrencies are dangerous.
Meanwhile, the Bank of England said in March that crypto assets present financial stability risks.
What do you think about the comments by Bank of England Governor Andrew Bailey? Let us know in the comments section below.
Why this matters
This cryptocurrency story adds another data point to the current market tape and is useful when read alongside nearby source coverage.
Original source
Read on Bitcoin NewsRelated market context
DBS Survey Finds 88% of Businesses Testing or Using Tokenized Money
TL;DR: A DBS survey published October 28 found that 88% of businesses in its sample were deploying or piloting tokenized-money use...
Bank of England Proposes Tokenized Collateral Safeguards for Clearinghouses
Government bonds are a key example in the proposed guidance, while tokenized money market funds remain an area for further feedbac...
Ripple Projects Nearly $900M Annual Product Revenue Run Rate Amid Banking Push
TL;DR: At its Swell conference, Ripple said it was approaching a $900 million annualized product-revenue run rate as it heads towa...
How Bitcoin Is Helping Reshape Online Slots
Bitcoin (BTC) is changing different aspects of handling money. Yet, online gaming platforms are one area you might not have come a...
XRP Ledger developers propose four fixes to close restricted token loopholes
The proposed fixes aim to enhance protocol security, ensuring issuer control over token distribution, which could bolster network...
Bitcoin Price Slides Below $79,000 as Binance Loses $5.8 Billion in Massive Hack
Bitcoin Magazine Bitcoin Price Slides Below $79,000 as Binance Loses $5.8 Billion in Massive Hack Bitcoin dropped below $79,000 on...