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“The risk of investing in cryptocurrencies is high,” said Bank of China Governor again skeptical

Cryptocurrency

“Cryptocurrencies have no intrinsic value”

Andrew Bailey, the governor of the Bank of England (the central bank of the United Kingdom), once again criticized crypto assets (cryptocurrencies) as “having no intrinsic value”. European Central Bank (ECB) President Christine Lagarde has a similar perception.

Governor Bailey said at a press conference on the 6th that the price of virtual currencies is rising as follows.

People can find value in them. This is because virtual currencies have ancillary value given from the outside.

However, cryptocurrencies have no intrinsic value.

President Bailey has made similar statements in the past.

In October of last year, he said, “It is difficult to find the intrinsic value of Bitcoin (BTC) itself,” while reserving that it may have external value in the sense that there is demand from people. Was there. He also criticized that cryptocurrencies are not suitable for payment.

At this time, the virtual currency community argued that Bitcoin has intrinsic value from various aspects such as “a ledger that cannot be tampered with” and “a new issue program that does not rely on human judgment”.

Relation: Question mark on “intrinsic value of Bitcoin” = Governor of the Central Bank of the United Kingdom

Contrary to President Bailey’s remarks, Bitcoin prices have risen more than five times to 6.3 million yen from around 1.2 million yen in October, when the previous president said. The market capitalization of the entire virtual currency has also grown from 348 billion dollars (about 38 trillion yen) to more than 2 trillion dollars (about 220 trillion yen).

Source: CoinMarketCap

But despite soaring prices, Bailey hasn’t broken his view on cryptocurrencies.

“Frankly, you should only buy cryptocurrencies if you are ready to lose all your assets,” Bailey advised. In addition, the word “virtual currency”, which is a combination of the phrase “crypto” and “currency”, has a sense of incongruity and prefers the term “cryptographic assets”. ..

In April, the Bank of England announced the establishment of a joint task force to “explore the possibilities of CBDC” in collaboration with the Ministry of Finance of the United Kingdom, indicating that it will consider the practicality of the Central Bank Digital Currency.

European Central Bank Governor has a similar view

European Central Bank (ECB) Governor Christine Lagarde also said yesterday in line with Mr Bailey’s opinion.

Lagarde said the combination of the two concepts “virtual” and “currency” didn’t work and I fully agree with Bailey in that regard.

When asked if the Central Bank Digital Currency (CBDC), the Digital Euro, which the ECB is investigating, competes with cryptocurrencies, Lagarde said, “Cryptocurrencies are different from CBDCs and stable coins. He emphasized that cryptocurrency investment involves great risks.

“Some types of cryptocurrencies are easy to use for money laundering,” he said, although he did not list specific stocks.

Lagarde has made these statements before, but the crypto community has said that “many of the manerons involve fiat currencies such as the US dollar and the euro” are unjustified.

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