Governor of the Bank of England: Bitcoin has no ‚intrinsic value‘.

Andrew Bailey argues that BTC has only extrinsic value, „in the sense that people want it“.

The crypto opinion of Andrew Bailey, Governor of the Bank of England, does not seem to have changed despite the economic fallout of the pandemic.

According to a Reuters report of October 12, Monday Bailey discussed with the British public during a question and answer session organized by the Bank of England (BoE). On that occasion, Bailey said he was „very concerned“ about the use of Bitcoin (BTC) as a means of payment. The Governor also said that people should consider the volatility of the asset when deciding to invest.

Bailey said:

„I have to be honest, I find it hard to see the intrinsic value of Bitcoin. It could have extrinsic value, in the sense that people want it“.

Currently the value of Bitcoin on Coinbase Pro is over £8,800, up from around £5,200 at the beginning of the year.

The BoE Governor’s statement is a confirmation of his views on cryptocurrency. When he served as chairman of the UK Financial Conduct Authority, Bailey told members of Parliament at a Treasury Select Committee hearing in March that crypto investors should „be prepared to lose all [their] money“ because these assets have no intrinsic value. In September, during a virtual conference, the Governor of the BoE stressed that crypto currencies are simply „unsuitable for the payment world“ and have „nothing to do with money“.

However, Bailey spoke differently about fiat-anchored digital currencies, arguing that stablecoins could offer „useful benefits“, including reduced payment waiting times. In addition, the Governor of the BoE announced in July that the bank is considering issuing a Central Bank Digital Currency.

According to Alexander Lebedev, former Russian banker and owner of two British newspapers, DeFi will put an end to the global banking oligopoly and parasitic

Alexander Lebedev, owner of the British newspapers Evening Standard and The Independent, as well as the Russian magazine Novaya Gazeta, spoke enthusiastically about the potential of cryptocurrency and smart contracts: according to him, they could revolutionize finance.

On October 13, in an extensive 1,800-word editorial published in The Independent, the billionaire predicted that the blockchain will destroy what he described as a global banking oligopoly and parasitic, stating that „blockchain technology and smart contracts will make it useless to employ the vast majority of people in the financial sector.

Although he believes that the current „explosive growth of DeFi platforms is driven by a rapid inflow of liquidity“ and „cannot continue indefinitely“, Lebedev wrote:

„The technologies behind this infrastructure open up enormous opportunities for the reconstruction of the global financial system.

The billionaire and investor said that smart contracts allow customers to access financial services „without the participation of an intermediary, i.e. the bank itself“, thus preventing „greedy bankers“ from stealing customers‘ funds.

Lebedev also revealed that he invested $100,000 in an Estonian yield-farming protocol as an „experiment“, being amazed at the speed of returns. Now he is trying to create an „Independent Decentralized Financial Ecosystem“.

The platform aims to offer „the full range of services of traditional banks“, including „currency exchange services, deposits, loans, payment and cash services, [and] domestic and international transfers“.

The former banker also noted that global regulators are moving closer and closer to crypto assets, citing recent legislation on stablecoin and security tokens passed by German, Chinese, Swiss and US legislators:

„The next step will be the ‚digitization‘ of real estate, including production facilities, movables, real estate and services, all of which will flow into distributed registers“.

Lebedev states that the global financial system, in its current form, is „leading the world economy to disaster“.

The well-known entrepreneur has devoted 25 years to banking and in 1995 he bought the third largest private bank in Russia, the National Reserve Bank: in his opinion there has been a change in banking practices, the purpose of which has become „stealing clients‘ money“. Lebedev added that thousands of Russian bankers have unduly appropriated „more than 100 million dollars“ since the nineties.


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