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Bank of England Head Slams Bitcoin

Mon, 07/10/2023 - 16:44
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Alex Dovbnya
Bank of England Governor Andrew Bailey labelled Bitcoin and similar cryptocurrencies as "extremely speculative assets," while also disparaging the reliability of stablecoins in a speech at the Mansion House in London
Bank of England Head Slams Bitcoin
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Andrew Bailey, Governor of the Bank of England (BoE), openly criticized Bitcoin and similar cryptocurrencies, categorizing them as "extremely speculative assets."

During his speech at the Mansion House in London, Bailey also highlighted his belief that despite the rise of digital currencies, traditional cash is here to stay. While these sentiments are not new to Bailey's rhetoric, his firm reiteration serves as a reminder of the regulatory scrutiny that Bitcoin and its digital peers are under, especially from central banks.

Bailey didn't reserve his criticism for cryptocurrencies alone; he also took aim at stablecoins, categorizing them as "not robust" and failing to "meet standards of safe money."

Stablecoins, cryptocurrencies pegged to real-world assets like the US dollar or gold, have been growing in popularity as they aim to provide stability in the highly volatile crypto market. However, Bailey's comments indicate a lack of confidence in these digital assets as reliable or safe forms of currency.

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Bailey has a history of expressing caution regarding cryptocurrencies. Prior to his recent remarks, Bailey has on several occasions voiced concerns about the speculative nature of digital currencies, stressing that investors should be prepared to lose all their money if they choose to invest in them.

In January 2021, Bailey stated that digital currencies lack intrinsic value. He argued that while people may choose them as a means of payment, that doesn't grant them any inherent value. His position on cryptocurrencies has been consistent, warning potential investors of the risks associated with these highly volatile assets.

In a more positive light, Bailey predicted that UK food prices are likely to fall this year, offering some relief amidst the turbulence of ongoing economic uncertainty.

He also emphasized the importance of avoiding ambiguity regarding customers' money during the execution of bank resolution strategies. 

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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