Just a week after the UK Financial Conduct Authority (FCA) announced the prohibition of cryptocurrencies in the region, the main economic officials came out to subtly support the decision with unhappy statements regarding digital assets.
The president of Bank of england, Andrew Bailey, assured that “Bitcoin has little intrinsic value”. The official, historically unrelated to the crypto market, urged investors to consider the cryptocurrency’s characteristic volatility when trading.
I have to be honest, it’s hard to see that Bitcoin has what we often call intrinsic value. It can have extrinsic value in the sense that people want it.
In March of this year, Bailey – precisely while he was head of the FCA – he told members of the British parliament that they should be prepared to “lose all their money” if they decided invest in cryptocurrencies.
Last month, English it also stated that digital assets “have no connection whatsoever with money” and rejected its use as a means of payment.
His latest statements, however, appeared to be an attempt to defend a ban he found 97% rejection among the participants of the crypto scenario in the region.
Anyway, Bailey made the exception to her criticisms of stablecoins and to the central bank digital currencies (CBDC). Support in fiat currency and centralization, respectively, are the characteristics that make the official see “benefits” in both types of assets.