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.
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.