Bank of England governor says investors should only buy crypto if 'prepared to lose all your money'

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Bank of England governor Andrew Bailey has a blunt message for those investing in crypto: "Buy them only if you're prepared to lose all your money."

Speaking at a press conference on Thursday, Bailey said he sees no intrinsic value in crypto. "I'm afraid they have no intrinsic value," he said. "And it doesn't mean to say that people don't put a value on them because they can have extrinsic value. But they have no intrinsic value."

Bailey also doesn't like the words crypto and currency together. He said he wants to use a "more neutral" phrase, "crypto assets."

Bailey has since long been a crypto critic. Last year, he made similar remarks: "If you want to buy bitcoin, be prepared to lose all your money… [bitcoin] has no intrinsic value." Earlier this year, he said crypto isn't suitable for payments.

Meanwhile, The Bank of England is exploring its own digital currency. Last month, the central bank, together with HM Treasury, created a joint task force to assess the possibility of launching a digital pound. If approved and issued, the U.K.'s digital currency would exist alongside cash and bank deposits rather than replacing them.

AUTHOR

Yogita Khatri is a senior reporter at The Block and the author of The Funding newsletter. As our longest-serving editorial member, Yogita has been instrumental in breaking numerous stories, exclusives and scoops. With over 3,000 articles to her name, Yogita is The Block's most-published and most-read author of all time. Before joining The Block, Yogita wrote for CoinDesk and The Economic Times. You can reach her at [email protected] or follow her latest updates on X at @Yogita_Khatri5.

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