BoE Governor: Bitcoin has no intrinsic value

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“It may have extrinsic value in the sense that people want it,” Bailey says.

Bank of England Governor Andrew Bailey has apparently not changed his mind about crypto despite the economic impact of the pandemic.

According to a Reuters report on October 12, Bailey spoke to the British public on Monday in a Bank of England (BoE) Q&A session. He explained that it made him “very nervous” that people were using Bitcoin Up for payments. The governor said that one should take into account the volatility of the asset when investing.

“To be honest, you can’t really say that Bitcoin has any intrinsic value,” Bailey said. “It may have an extrinsic value in the sense that people want it.

Bitcoin currently stands at over 8,800 pounds sterling on Coinbase Pro. By comparison, it was about 5,200 pounds at the beginning of the year.

With this explanation the governor of the BoE confirmed his previous statements to crypto currencies. During his time as head of the UK’s Financial Services Authority FCA, Bailey told MPs at a hearing of the Treasury Special Committee in March that investors “must expect to lose all their money” because the crypto asset has no intrinsic value. At a virtual conference in September, the BoE Governor emphasized that crypto assets were simply “unsuitable for the world of payments” and had “no intrinsic connection to money.

Bailey expressed a very different opinion about Fiat digital currencies. He said Stablecoins could provide “useful benefits” such as smoother payments. In addition, the governor of the BoE announced in July that the bank was considering issuing a digital central bank currency (CBDC).

The Estonian crypto currency exchange BitBay went offline on Monday unannounced for almost two hours.

According to a Tweet from BitBay on October 12, the exchange went offline at about 16:28 (UTC) and was back in operation at 18:10. BitBay posted an update and stated that the unnamed problem was solved. It also announced its intention to launch the platform with “blocked transaction processing”. Users had 30 minutes to cancel offers that had been posted on the exchange shortly before the shutdown.

This incident is the second unplanned shutdown of BitBay in 2020. In March, users were unable to trade for more than 18 hours because the exchange was struggling with a “network problem” caused by its “external service provider.

The current shorter outage was less of a cause for concern on social networks compared to the case at the beginning of the year. But at least one user referred to the network problems of BitBay in March.

“Are you guys playing with your investors’ feelings,” said Twitter user Binod Kumar. “It’s still not working.”

BitBay is said to have an annual volume of 547,000 Bitcoin (BTC), which is about $6.4 billion.