BoE's Bailey sees little intrinsic value in Bitcoin

BoE's Bailey sees little intrinsic value in Bitcoin

Bank of England Governor Andrew Bailey said on Monday it was hard to see how Bitcoin had any intrinsic value and he cautioned over its use as a means of payment.

FILE PHOTO: Representations of virtual currency Bitcoin and U.S. dollar banknotes are seen in this
Representations of virtual currency Bitcoin and U.S. dollar banknotes are seen in this picture illustration taken January 27, 2020. REUTERS/Dado Ruvic/Illustration/File Photo

LONDON: Bank of England Governor Andrew Bailey said on Monday it was hard to see how Bitcoin had any intrinsic value and he cautioned over its use as a means of payment.

"I have to be honest, it is hard to see that Bitcoin has what we tend to call intrinsic value," Bailey said during a BoE question and answer session with members of the public.

"It may have extrinsic value in the sense that people want it."

He said he was "very nervous" about people using Bitcoin for payments because its value was uncertain, pointing out that investors should realise its price is extremely volatile.

(Reporting by Andy Bruce; editing by William James)

Source: Reuters

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