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Bank of England Governor: Cryptocurrencies Could Be Worth "Nothing"

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Tue, 06/15/2021 - 14:07
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Alex Dovbnya
Bank of England’s Andrew Bailey had some tough words for crypto
Bank of England Governor: Cryptocurrencies Could Be Worth "Nothing"
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During his virtual appearance at TheCityUK's June 15 conference, Bank of England governor Andrew Bailey noted that the external value of cryptocurrencies could be “nothing,” Financial News reports.

He claimed that cryptocurrency prices were “very unstable.”

Bailey reiterated that, unlike stablecoins, cryptocurrencies of the likes of Bitcoin and Ethereum didn’t have any intrinsic value.

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Despite his animosity toward crypto, Bailey acknowledged that digital money is “an important source of innovation”:

New forms of digital money represent an important source of innovation, so we must evaluate how they meet our public interest objectives.

Yet, the central banker also promised some “tough love” for cryptocurrency firms, warning that innovations won’t skirt regulations:

What we can’t have is a world where innovation gets a free pass to a non-public interest. The odds of that ending not well are too high.

As reported by U.Today, the Bank of England is currently working on “Britcoin,” its own central bank digital currency, but the timeline of its launch remains unclear.

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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.