Bank of England: Andrew Bailey warns of Bitcoin as a risky investment

Bank of England: Andrew Bailey warns of Bitcoin as a risky investment

Bitcoin, the best -known cryptocurrency, has no inner value and is extremely volatile. Andrew Bailey, the head of the Bank of England. In a speech at a dinner event in London, Bailey emphasized that Krypto was classified as an extremely risky facility. He pointed out that Bitcoin and other cryptocurrencies cannot be awarded a special value.

Bailey also mentioned two forms of crypto property, namely old coins (other cryptocurrencies except Bitcoin) and stable coins (cryptocurrencies, the value of which is bound to a stable asset, e.g. a currency). He found that stablecoins are not permanent or are managed and that they do not meet the requirements for safe funds.

The main topic of Baileys speech was the need for "reinforced electronic means". He emphasized the importance of electronic transfers and spoke of "Boosted Electronic Money" as an instrument that offers more options for financial transactions. Bailey emphasized the connectivity of electronic money with intelligent contracts and maintaining the functionality of funds.

After Bailey had dealt with cryptocurrencies, he drew his attention to Central Bank Digital Currency (CBDC). He emphasized that his main goal was to offer CBDC as the primary financial instrument for private customers. Bailey is of the opinion that electronic funds that are properly created are not the only function of an electronic financial institution.

It is important to note that Andrew Bailey's views are not new to cryptocurrencies. As early as 2022, the British government made it clear that investors have to be ready to lose their money because cryptocurrencies have no particular value.

In terms of personal information on Andrew Bailey, the article cannot provide any information about whether it marries in 2023.