The Governor of the Bank of England has decided to join the ranks of people hostile to cryptocurrencies. He asserted that bitcoin (BTC) will never be an effective means of payment. This statement comes in a context where cryptocurrency raises questions on both sides.
Banks hostile to both bitcoin and altcoins
In a recent podcast, the Governor of the Bank of England revealed his impressions of bitcoin (BTC). He predicted that the digital asset will never become a means of payment widely accepted, “because it is impractical”. He repeatedly stated that bitcoin has no intrinsic value.
During the past week, several central banks have given their opinions on the evolution of cryptocurrency. The comments they made were very unflattering for the digital asset that is bitcoin. As U.Today reports, European Central Bank President Christine Largade estimated that ” cryptocurrencies are worth absolutely nothingwhile deploring the excessive speculation associated with this new asset class”.
Separately, earlier today, echoing Bailey’s comments, Shaktikanta Das, the Governor of the Reserve Bank of India, said that “Cryptocurrency has no underlying value”. Meanwhile, Sweden’s Riksbank recently posted a lengthy message on Twitter explaining why bitcoin (BTC) and other cryptocurrencies cannot be considered money.
The reason for the rejection of cryptocurrencies by banks
The majority of central banks around the world have taken an unfavorable stance against cryptocurrencies for years. This trend continues, especially since the collapse of Terra’s ecosystem (Luna). This situation serves as an argument for banks and people who believe that cryptocurrencies cannot be used as a means of payment.
It’s not just institutions that take a dim view of cryptocurrencies, influential people are also taking the same view. As U.Today reports, FTX CEO Sam Bankman-Fried, the second richest cryptocurrency billionaire, recently said that bitcoin (BTC) has no “no future” in the payments industry due to its scalability issues that have gone unresolved over the past decade.
Several institutions, including central banks, have an unfavorable position on cryptocurrencies. They believe that they do more harm than good, especially since they are volatile and the market is very unstable. Bitcoin (BTC) is one of the cryptocurrencies they criticize the most.
Source : U.Today
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