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New BoE governor attacks Bitcoin

While Central Banks from around the world are embracing blockchain technology, that was made popular by Bitcoin, and are working to create Central Bank issued Digital Currencies (CBDCs), new governor of the Bank of England (BoE) bashes Bitcoin.

In a 2014 quarterly bulletin titled: “The economics of digital currencies” published by the Bank of England, it was stated: “In theory, digital currencies could serve as money for anybody with an internet-enabled computer or device”.

Now however, the new governor of the BoE Andrew Bailey, whom used to be the head of UK financial watchdog, the FCA had expressed his negative views of Bitcoin in a video: “If you want to buy Bitcoin, be prepared to lose all your money… it has no intrinsic value”.

In the aforementioned quarterly bulletin, the BoE  had also stated that in an extreme scenario where Bitcoin would become the most used currency: “Since in this extreme scenario all payments would be conducted away from sterling as base money for essentially all of the economy, the Bank’s ability to influence price-setting and real activity would be severely impaired”.

It seems that financial crashes such as the one that took place in 2008 due to little oversight on US banks, caused banks to lose credibility and trust. Quantitative easing on its own is seen as mistake used to cover up another mistake. New assets that are fully governed by code (not humans) have been gaining traction and trust from the public which becomes problematic for traditional institutions.

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