In mid-May, Musk caused Bitcoin to lose half of its value after Tesla (NASDAQ: TSLA) disallowed selling cars in Bitcoin.
“We’re going to engage with users, the technology sector, to understand the potential for these things,” Bailey said. “And there’s a lot of work going on in the Bank of England to understand the implications of them for central banking.”
Nonetheless, Bailey’s comments aren’t the first of their kind. In May, he told journalists that cryptocurrencies have “no intrinsic value” and that crypto tokens can cause traders to lose all their money.
“I’m afraid currency and crypto are two words that don’t go together for me,” he said.
The comments of the governor echoed the UK’s Financial Conduct Authority as well as European Central Bank president Christine Lagarde who called Bitcoin a “highly speculative asset which has conducted some funny business … and totally reprehensible money laundering activity.”
In conclusion, the Bank of England said this month that it might soon launch its own central bank digital currency!
