Bank of England head Andrew Baileywarned that crypto assets provide a method of payment for those who wish to engage in criminal activity.
Bank of England Governor Andrew Bailey spoke at an online question-and-answer session. The president said that the rise of cryptocurrencies will help illegal activities.
“The advent of digital payment instruments, and cryptocurrencies in particular, suggests that (evidence shows) that they provide another form of payment for people willing to engage in criminal activity, I fear.”
Bailey drew attention to the aspects of crypto assets that can be used for different purposes and warned. Making similar statements in May, the President said: “Obviously I have my doubts about cryptoassets because they are dangerous and there is a lot of ‘enthusiasm’ there.”
Asked about whether cryptoassets have any real value, the president also stated that he thinks “cryptocurrencies have no real value.” The President also emphasized that this does not mean that people do not value cryptocurrencies, noting that these assets may have “extrinsic value”.
“I want to say this clearly again. Only buy them (crypto assets) if you are ready to lose all your money!”
The Governor of the Bank of England is not the only one concerned about crypto being used in illegal activities. The head of the European Central Bank (ECB), Christine Lagarde, said in May that cryptocurrencies are prone to money laundering.
US Treasury Secretary Janet Yellen spoke about cryptoassets used in illegal financing several times this year. President, last February, Bitcoin (BTC) and highlighted the importance of crypto regulation to ensure that cryptocurrencies are not used in illegal transactions.
Last month, U.S. President Joe Biden said: “The United States will work with 30 countries to accelerate our cooperation in combating cybercrime, enhance cooperation with law enforcement, curb the illicit use of cryptocurrencies, and address these issues diplomatically.”