BoE’s Incoming Governor Andrew Bailey Issues Caution on Bitcoin

Those are used to investing in traditional market will show some hesitation for investing in cryptocurrencies. This was the case with Andrew Bailey, ex-chief of the UK’s Financial Conduct Authority (FCA).

Bailey opined that crypto and Bitcoin investors in particular should be ready to lose their entire capital.

Bailey gave his opinion regarding cryptos to the UK Parliament members at a Treasury Select Committee hearing yesterday. Bailey reaffirmed his earlier caution on Bitcoin and cryptos at large before remarking:

“If you want to buy Bitcoin, be prepared to lose all your money… [bitcoin] has no intrinsic value.”

Bailey’s small compliment for crypto was that the digital asset has “extrinsic value”. Nevertheless, he believes “it hasn’t caught on much, as people predicted it would.”

The observations reflect that of billionaire investor Warren Buffett, who once gain stressed last month that Bitcoin has no intrinsic value. While Buffett rarely offers his views to reporters on the matter, Bailey remains steadfast in his stance about cryptos.

Amidst the Bitcoin rally in December 2017, Bailey, while speaking to BBC, referred the cryptocurrency as “volatile” and an “odd commodity” while issuing the same caution:

As the previous chief of the U.K.’s Financial Conduct Authority, Bailey will assume the position of Governor of BoE (Bank of England) on March 17.

Mark Carney, current Governor, has already backed FaceBook’s stablecoin venture Libra, which is expected to go live later this year.

Carney, notably, was open to the idea of rolling out a central bank digital currency (CBDC) in the UK. Bailey’s statement hints that BoE will take a different stance soon.

However, the country’s representative will take part in a discussion on cryptocurrencies with representatives of five other countries in April.