Investing in cryptocurrencies will always receive some skepticism from officials who started in traditional markets. Today in London, Andrew Bailey expressed this sentiment, arguing anyone putting money into Bitcoin should be prepared to lose the shirt off their back.
Bailey gave his thoughts on the cryptocurrency to members of the U.K. Parliament at a Treasury Select Committee hearing on Mar. 4. In a video available to Cointelegraph, Bailey reiterated his past warnings on Bitcoin and cryptocurrencies as a whole before stating:
“If you want to buy Bitcoin, be prepared to lose all your money… [Bitcoin] has no intrinsic value.”
The little praise he did give the crypto asset was labeling it as having “extrinsic value”. However, he thought “it hasn’t caught on much, as people predicted it would.”
Bailey’s remarks echo those of billionaire Warren Buffett, who made the claim in an interview last month that Bitcoin has no value. However, while Buffett seldom speaks to reporters on the subject, Bailey has been consistent in his criticism of cryptocurrencies.
During a December 2017 BBC interview, in the middle of the Bitcoin boom, Bailey called the digital asset “volatile” and an “odd commodity” while giving the same warning:
— BBC Newsnight (@BBCNewsnight) December 14, 2017
As the former head of the U.K.’s Financial Conduct Authority, Bailey is set to become the next Bank of England (BoE) Governor on Mar. 17. The outgoing governor, Mark Carney, gave his support for Libra, set to be released by Facebook this year.
Bank of England still exploring CBDCs
While outgoing governor Carney said he was open to having a central bank digital currency (CBDC) in the United Kingdom, Bailey’s remarks today seem to indicate his time spent at the BoE will take a different direction. Nevertheless, representatives from England will join those from five other countries in April this year to discuss CBDCs.