Bank of England's Governor Warns About Crypto Amid Sell-off — 'Be Prepared to Lose All Your Money'

The governor of the Bank of England, Andrew Bailey, has reiterated his warning about cryptocurrency investing after U.S. crypto lender Celsius abruptly froze withdrawals. He stressed that investors should be prepared to lose all their money, emphasizing that crypto has no intrinsic value.

Bank of England’s Governor Warns About Cryptocurrency Following Celsius’ Withdrawal Freeze

Bank of England (BOE) Governor Andrew Bailey reiterated his concerns about cryptocurrency investing to the British parliament’s Public Accounts Committee Monday.

Responding to a question on how regulators’ duty to protect consumers could clash with the government’s plan to promote financial innovation, he was quoted by Reuters as saying:

If you want to invest in these assets, okay, but be prepared to lose all your money.

“People may still want to buy them because they have extrinsic value,” he continued, adding that “people value things for personal reasons.”

The Bank of England chief cautioned:

But they don’t have intrinsic value. This morning we have seen another blow-up in a crypto exchange.

Bailey was referring to U.S. crypto lender Celsius abruptly freezing withdrawals. Following a sell-off over the weekend, the crypto market was in a bloodbath Monday.

The governor of the British central bank has warned on several occasions that bitcoin has no intrinsic value. In May, he also said that BTC is not a practical means of payment. In April, he claimed that crypto creates an “opportunity for the downright criminal.” Last year, he warned that cryptocurrencies are dangerous.

Meanwhile, the Bank of England said in March that crypto assets present financial stability risks.

What do you think about the comments by Bank of England Governor Andrew Bailey? Let us know in the comments section below.

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