Known for his reluctant stance on decentralized money, Bank of England (BoA) Governor Andrew Bailey has recently taken his anti-crypto rhetoric up a notch. In a meeting with MPs in London, Bailey said cryptocurrencies are “dangerous”.
Andrew Bailey remains skeptical about cryptos
“Crypto-assets,” as Bitcoin and the rest of the central bank’s official labels present a threat to the public, Bailey told the Treasury Committee of the British Parliament. The governor’s statement on Monday reiterates his long-standing concern about decentralized digital currencies, Reuters noted Report good. Addressing the members of the committee, the head of the Bank of England said:
I am obviously confused about crypto-assets, because they are dangerous and there is a lot of excitement.
Andrew Bailey’s latest criticism comes after previous statements revealed his negative attitude towards cryptocurrency. The governor has warned ordinary Britons in the past that they should not invest in crypto until they are ready to lose all their money.
The BOE chief believes that digital financial assets such as bitcoin do not fulfill the major functions of standard means of payment. In early May, the banker stated that “I will only emphasize what I have said quite a few times in recent years. I am afraid they have no intrinsic value,” but he also acknowledged that people ” External “value. And in January, Bailey Expressed It is suspected that any cryptocurrency will survive.
Governor’s report shows concern about growth and inflation
Andrew Bailey’s comment coincides with a turbulent period in the crypto space. Negative statement by other public figures, Organization, And Governments Have severely affected the cryptocurrency markets Loss of billions In the past days and weeks. However, the crypto-economy was performing very well until recently, compared to other sectors which are suffering from the Kovid-19 crisis.
According to Bailey’s annual report to the Treasury Committee, the United Kingdom’s gross domestic product (GDP) fell 1.5% in the first quarter of this year to 8.7% from its pre-epidemic level in Q4, 2019. And this is despite the fallout effect. Of various restrictions on economic activity. In the document Published The Governor noted on Monday by the Bank of England:
Over the past twelve months, we have consistently thought that activity in the economy will return significantly faster, but the timing of that impact has been delayed by a further wave of Kovid.
The report suggests that Andrew Bailey, who took over as BOE governor in March 2020, is also concerned with not reaching the target rate of UK inflation. During the past year, the indicator has been at least one percentage point below the 2% target. Bailey admitted that he had to explain the reasons for this to the Chancellor of the Treasury on several occasions, including a Kovid-related fall in commodity prices, a cut in VAT for some services, and lower demand in general.
The Treasury Select Committee is appointed by the House of Commons to oversee government spending as well as the administration and policy of the Treasury, the Bank of England and other public institutions. Bailey has previously served as the BOA’s chief cashier, deputy governor, and chief executive of the Financial Conduct Authority.
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