Governor Andrew Bailey has been a longtime crypto critic and this time he has claimed that crypto has no intrinsic value. The move by the DeFi platform has left the crypto market in shambles and it still continues with Bitcoin dropping over 10% from $25000 to a new eighteen month low of $20,834.
Crypto assets have no intrinsic value. This morning we have seen another blow-up in a crypto exchange
Previously in an interview with the Future Podcast, which is hosted by Jimmy McLoughlin, an ex-government adviser— he said that bitcoin and other digital products were not ‘practical means of payment.’
Bailey’s remarks came after Celsius’ choice on Sunday evening to end transfers and withdrawals, leaving market participants outrageous. Celsius is based in the U.K. and has said it plans to “honor withdrawal obligations” regardless of a popular theory about its solvency that has been making rounds all over the internet.
The UK central bank has previously spoken wel about a CBDC and its benefits but on several occasions have spoken negatively about cryptocurrencies including the two largest coins, Bitcoin and Ethereum.