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Bank of England governor Andrew Bailey reportedly said he believes cryptocurrencies are 'dangerous'

May 25, 2021, 01:23 IST
Business Insider
Bank of England governor Andrew Bailey had a warning about cryptocurrencies.Pool/Reuters
  • Cryptocurrencies are "dangerous," according to Bank of England's governor Andrew Bailey.
  • Bailey said he's "skeptical" about crypto-assets in another critical statement about the crypto-sphere.
  • The Bank of England governor previously said crypto investors should be willing to lose all their money.

In a meeting with the British Parliament's Treasury Committee on Monday, Bank of England governor Andrew Bailey said cryptocurrencies and other digital assets are a danger to the public, a report out of Reuters indicates.

"I'm skeptical about crypto-assets, frankly, because they're dangerous and there's huge enthusiasm out there," Bailey said.

The comments reiterate Bailey's long-standing concerns and bearish outlook on cryptocurrencies and related assets.

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On May 6, Bailey told journalists following the Bank of England's interest rate decision that he believes cryptocurrencies like bitcoin have no "intrinsic value."

"I would only emphasize what I've said quite a few times in recent years. I'm afraid they have no intrinsic value," Bailey said. "Now that doesn't mean to say people don't put value on them, because they can have extrinsic value, but they have no intrinsic value."

"I'm sorry, I'm going to say this very bluntly again: buy them only if you're prepared to lose all your money," he added.

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Bailey went on to say that the two words "crypto" and "currency" simply "don't go together for him."

Bailey has been the governor of the Bank of England since March 16, 2020. He has also served as the Bank of England's chief cashier, deputy governor, and chief executive of the Financial Conduct Authority.

The governor's comments come after a wild few weeks of volatility for the cryptocurrency world.

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Bitcoin tumbled more than 50% from its peak last week before recovering on Monday to trade back above the $37,000 per coin mark.

Ether also fell more than 50% from its record highs to below $1,750 before mounting a nearly 40% recovery on Monday.

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