icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm

Cryptocurrency investors should be prepared to lose all their money – Bank of England

Cryptocurrency investors should be prepared to lose all their money – Bank of England
Digital currencies “have no intrinsic value,” according to Bank of England (BOE) Governor Andrew Bailey. He warned that people who invest in crypto should be prepared to lose all their money.

A skeptic of crypto, Bailey was asked at a press conference about the rising value of cryptocurrencies. He said, as quoted by CNBC: “They have no intrinsic value. That doesn’t mean to say people don’t put value on them, because they can have extrinsic value. But they have no intrinsic value.”

The BOE governor added: “I’m going to say this very bluntly again – buy them only if you’re prepared to lose all your money.”

Bailey’s comments follow a similar warning from the UK’s Financial Conduct Authority (FCA), which said in January that “Investing in crypto assets, or investments and lending linked to them, generally involves taking very high risks with investors’ money.”

Also on rt.com Britcoin? UK considers developing digital sterling as cash payments decline

The financial services watchdog added: “If consumers invest in these types of product, they should be prepared to lose all their money.”

Meanwhile last month, the Bank of England said it would team up with the UK Treasury to explore central bank digital currencies, or CBDCs. The taskforce is expected to look at use cases, opportunities, and risks of a potential digital pound.

For more stories on economy & finance visit RT's business section

Podcasts