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Bank of England Governor Claims Bitcoin Will Fail as Payment Method

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Mon, 05/23/2022 - 19:00
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Alex Dovbnya
Bank of England Governor Andrew Bailey insists Bitcoin has no intrinsic value
Bank of England Governor Claims Bitcoin Will Fail as Payment Method
Cover image via www.bankofengland.co.uk
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Bank of England Governor Andrew Bailey has joined the choir of central bankers who have criticized cryptocurrencies over the past week.

During his recent podcast appearance, Bailey predicted that Bitcoin wouldn’t end up becoming a widely accepted form of payment since it is not “practical.”

As reported by U.Today, the central banker has repeatedly stated that Bitcoin has no intrinsic value.

Bailey continues to stick to his guns, claiming that Bitcoin has value only because people want to own it. “People collect all sorts of things,” Bailey said.

Over the last week, several high-profile central bankers made some unflattering comments about crypto. As reported by U.Today, European Central Bank President Christine Largade concluded that crypto is worth absolutely nothing while bemoaning excessive speculation associated with the novel asset class.

Earlier today, Shaktikanta Das, the governor of the Reserve Bank of India, said that crypto has no underlying value, echoing Bailey’s comments.

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India's Central Bank Head Claims Crypto Has No Underlying Value
In the meantime, Sweden’s Riksbank recently published a lengthy Twitter thread that explains why Bitcoin and other cryptocurrencies cannot be classified as money.

While central bankers have been dismissive of cryptocurrencies for years, even some of the most influential people within the cryptocurrency industry tend to question Bitcoin’s ability to succeed as a means of payment.

As reported by U.Today, FTX CEO Sam Bankman-Fried, the second-richest cryptocurrency billionaire, recently said that Bitcoin “has no future” in the payments sector because of its scalability issues that haven’t been solved over the past decade.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.