According to the governor of the Bank of England, it is difficult to consider Bitcoin as a method of payment.
Andrew Bailey, governor of the British central bank, said at today's public Q+A session: "it is hard to see that Bitcoin has what we tend to call intrinsic value," he added, "it may have extrinsic value in the sense that people want it," reported Reuters.
On people using Bitcoin as a payment method, Bailey stated that he is "very nervous" given the volatility of Bitcoin. As per Reuters, Bailey also said the recovery momentum of the British economy will exceed expectations.
Bailey has long criticized Bitcoin - the largest cryptocurrency by market cap. In a speech at the Brookings Institute last month, he stated that cryptocurrencies "have no connection at all to money."
At the hearing of the select committee of the British Parliament in March, Bailey reiterated the same idea: Although Bitcoin has no intrinsic value, it may have extrinsic value. "If you want to invest in Bitcoin, be prepared to lose all your money," he said.
However, Bailey is bullish on stablecoins, which are cryptocurrencies pegged to some real-world asset such as US dollar or British pound. In his speech last month, he said: "Stablecoins could offer some useful benefits. For example, they could further reduce frictions in payments, by potentially increasing the speed and lowering the cost of payments (particularly if global stablecoins were to be established).
He said that these digital assets could complement the central bank's digital currency, which is essentially a state-rolled crypto, "either as distinct payment options, or with elements of the stablecoin ecosystem, such as wallets, providing consumers with access to a CBDC" may be an option.