The Governor of BoE, or Bank of England, Andrew Bailey, criticized Bitcoin and other cryptocurrencies, openly categorizing them as nothing more than ‘extremely speculative assets.’
While delivering a speech at London’s Mansion House, Bailey highlighted his belief that inspite of the rising popularity of different digital currencies, traditional cash is definitely here to stay. While all these sentiments are definitely not really new to the rhetoric of Bailey, his solid reiteration does serve as a vital reminder of the scrutiny (regulatory) that Bitcoin and other cryptos are under from the Central banks.
Bailey not just criticized cryptos alone – he also had much to say about stablecoins, calling them ‘not robust’ and also mentioning how they are ‘failing to meet standards of safe money.’ Stablecoins have been rising in popularity since they focus on providing stability in the highly-volatile cryptocurrency market.
However, the comments made by Bailed regarding the same indicate a lack of confidence in these assets as safe or reliable forms of currency.
Bailey does have an impactful history of expressing proper caution associated with cryptos. Before his very recent remarks, Bailey has voiced his issues with the speculative and volatile nature of most digital assets in the past as well.
On several occasions, he has stressed how investors should be ready to lose most of their wealth if they opt to invest in digital assets.
For instance, in January 2021, Bailey mentioned how digital currencies really lack any kind of intrinsic value. He argued while people might select them as a payment method, it does not really grant them any kind of inherent value. His stand on cryptos has been pretty consistent, warning multiple investors of the different risks related to these highly volatile digital assets.
In a relatively more positive context, Bailey did predict that the food prices in the United Kingdom are likely to fall this year while offering some much-needed relief in the middle of all the turbulence related to the current economic uncertainty.
He also spoke about the ‘importance of avoiding ambiguity regarding customers’ money during the execution of bank resolution strategies.’
