Asked at a press conference about the rising value of cryptocurrencies on Thursday, Bailey said: “They have no intrinsic value.
Bitcoin is up over 90% so far this year, thanks in part to rising interest from institutional investors and corporate buyers such as Tesla.
Meanwhile, alternative digital currencies have made even larger gains than bitcoin.
investing app Freetrade, described the dogecoin rally as “a classic example of greater fool theory at play,” referring to the practice of selling overvalued assets to investors who are willing to pay a higher price.
Last month, the Bank of England launched a joint taskforce with the Treasury aimed at exploring central bank digital currencies, or CBDCs.