The deputy governor of the Bank of England considers the collapse of crypto to be plausible, the supervisory authorities urgently have to set up rules - regulation
The deputy governor of the Bank of England considers the collapse of crypto to be plausible, the supervisory authorities urgently have to set up rules - regulation
The deputy governor of the Bank of England, Jon Cunliffe, says that a collapse of the cryptocurrency market is certainly "plausible" and explains that the regulatory authorities have to adhere to cryptor rules worldwide. While cryptocurrencies are currently not a threat to the country's financial stability, according to the deputy governor, there are some “very good reasons” to assume that this may not be the case for long.
crypto collapse plausible, crypto rules are "one thing of urgency"
The deputy governor of the Bank of England, Jon Cunliffe, spoke on Wednesday at the Sibos conference on cryptocurrency and its regulation. He emphasized that the regulatory authorities have to work quickly and set rules to regulate cryptocurrencies worldwide, as the industry grows quickly and how long it takes to introduce new rules.
he said:
regulatory authorities internationally and in many legal systems started with work. It must be continued urgently.
As an example of how long it takes to determine new rules, Cunliffe said that the global regulatory authorities suggested last week that the protective measures they take to systemic clearing houses and payment systems should also be applied to stage. He added that it took two years to work out this measure, in the course of which the stable coins rose by 16 times.
In terms of the collapse of the US mortgage market, which led to a global banking crisis, Cunliffe said: "As the financial crisis showed us, one does not have to take into account a large part of the financial sector in order to trigger financial stability-Sub-Prime was estimated in 2008 at around $ 1.2 trillion." He stated:
Such a collapse is certainly a plausible scenario given the lack of inner value and the resulting price volatility, the probability of infection between crypto assets, the cyber and company weaknesses and of course the power of herd behavior.
The Bank of England has recently published a report, which says that the risks to the stability of the British financial system through cryptocurrencies currently limited . Cunliffe also beforehand Crypto industry is not large enough to endanger the country's financial stability. However, he said at the conference on Wednesday that there are now some “very good reasons” to believe that this may not be the case for long.
Recently, the International Monetary Fund (IMF) has published a report that means that the increasing popularity of cryptocurrency Hide the risks of the financial stability and calls on the governments worldwide to work together to work together to work together to work together Rules to regulate cryptocurrencies.
cunliffe said:
In fact, the effective integration of the crypto world in the regulatory framework will help to ensure that the potentially very great advantages of using this technology can thrive on financing.
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