The Bank of England’s Governer says that cryptocurrencies such as Bitcoin have no intrinsic value, and their utilization for payments is not practical. However, Andrew Bailey acknowledges that the underlying technology “may well lead to things.” His comment adds to a similar but more incriminating assessment of crypto by European Central Bank President – Christine Lagarde this Sunday.
Bailey happened on the Jobs of the Future podcast to examine Bitcoin, the world’s largest cryptocurrency and the future of blockchain technology and expressed that he doesn’t think that Bitcoin is a practical means of payment.
When asked by the former advisor to Britain’s prime minister and the podcast host, Jimmy McLoughlin, if he owns any Bitcoin (BTC), Bailey replied that he doesn’t.
“Honestly, I am probably not liked by the advocates of Bitcoin because I have said I don’t think it has any intrinsic value,” Bailey added further. Moreover, the Bank of England’s head believes that BTC only has extrinsic value, i.e., people only want to acquire it as a store of value, while some people believe it to be a hedge against inflation.
Due to the absence of intrinsic values, BTC is not a suitable payment method, Bailey explained. “But again, it [Bitcoin] may well lead to things,” Bailey said, praising the technology beneath cryptocurrencies.