Bank of England (BoE) Governor, Andrew Bailey, says cryptocurrencies are dangerous and there is a "huge enthusiasm," Bloomberg reports. While Bailey praises financial innovation in general, investors still should maintain vigilance about the underlying assets they create.
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"I do not want to be seen as a Luddite. I am skeptical about crypto assets frankly because they are dangerous and there is a huge enthusiasm," Bailey explained.
The BoE Governor once again reminded that cryptocurrencies "have no intrinsic value." In October last year, Bailey expressed doubts about bitcoin's (EXANTE: Bitcoin) intrinsic value.
Bailey said that bitcoin barely has any intrinsic value, if any. The Governor of the BoE also cautioned over bitcoin's use as a means of payment. Meanwhile, British Finance Minister, Rishi Sunak, thinks that the BoE should consider launching its own "Britcoin", a digital version of sterling.
The digital currency would help businesses and consumers to sidestep financial intermediaries as their accounts would be stored on the BoE's platform, Sunak said.
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