On May 24, Andrew Bailey, the Bank of England Governor, joined the cast of central bankers who have recently criticised cryptocurrencies. In the Jobs of the Future podcast, he said that he believes bitcoin has no intrinsic value and will not become a popular form of digital currency.
When asked if he owned any bitcoin, the governor replied:
“I don’t, no. To be honest with you, I’m probably not liked by the advocates of Bitcoin because I have said I don’t think it has any intrinsic value. “
The governor went on to say that he believes bitcoin can only have extrinsic worth, which simply means that people want to own and acquire it as a store of wealth. When considering what type of digital money will come to widespread usage if not bitcoin, Bailey said the lack of intrinsic value is due to its impracticality as a method of payment.
However, the governor went on to say that there seems to be value in bitcoin’s fundamental technology as it relates to the future of payments. Bailey explained why the technology should be respected, and then went on to explain why digital money is inevitable.
In discussing the possible results of the public’s willingness to accept digital forms of money, the governor mentioned regulators’ responsibilities to adjust to changing tides. One of the governor’s last comments about Bitcoin and the technology behind it was about how regulatory bodies like the Bank of England might act.
