Bank of England governor Andrew Bailey has warned crypto holders against losing money pumped into the sector. According to Bailey during an online press conference on the 6th of May, cryptocurrency holders who continue to maintain should be ready to lose all their funds.
The governor stated:
“Buy them only if you’re prepared to lose all your money.”
Bailey also remained bearish on BTC, repeating that the king coin has no intrinsic value. Back in January, during the World Economic Forum (WEF) Davos meeting, Bailey said crypto cannot function as a means of payment in the long term.
Back in April, the Bank of England set up a task force with the British government to create a digital sterling or “Bitcoin.” The Bitcoin plan was birthed in response to ongoing work by global central banks to create their individual central bank digital currencies (CBDCs).
According to a senior investment and market analyst at Hargreaves Lansdown, Susannah Streeter, the creation of Britcoin is not to rival Bitcoin. Also, the Bank of England will consult with stakeholders regarding the design and operation of the Britcoin.
Encouraging central banks to develop CBDCs, National Australia director Lisa Wade warned that customers will be forced to opt for more volatile private options if CBDCs are not developed.
Already, several countries including China and Japan have conducted various tests of their national digital currencies.
Image Credits: Pixabay
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