The deputy governor of the Bank of England warns that crypto prices could fall to zero - regulation
The deputy governor of the Bank of England warns that crypto prices could fall to zero - regulation
The Deputy Governor of the Bank of England for Financial Stability, Sir Jon Cunliffe, has warned that the price of cryptocurrencies, including Bitcoin, could fall on zero. He noticed that the crypto industry "grows very quickly", he emphasized: "We really have to roll up and continue our sleeves so that if this becomes a much larger topic, we actually have the regulatory framework." to curb the risks. ”
The deputy governor of the Bank of England warns that crypto prices could drop to zero
Sir Jon Cunliffe, deputy governor of the Bank of England for financial stability, warned on Tuesday in the BBC program that cryptocurrencies become worthless.
Cunliffe initially recognized that cryptocurrencies are “very quickly grown” and becoming a mainstream. He emphasized that this growth rate could be a danger to the established financial system, although currently only about 0.1% of the British household assets are currently in cryptocurrencies. An estimated 2.3 million people in Great Britain have cryptocurrencies, each of which has an average amount of around £ 300 ($ 397).
The Bank of England's board also pointed out that financial specialists like fund managers want to know whether cryptocurrencies should be part of their portfolio.
The deputy governor warned that a drastic loss of value from cryptocurrencies could have an impact, and emphasized that the Bank of England must be ready to contain these risks. He emphasized:
Your price can fluctuate very strongly and you could theoretically or practically drop to zero.
"I think the point at which you worry is when it is integrated into the financial system - if a large price correction could really hit other markets and established financial market players," says Cunliffe.
This is not the first time that the deputy governor of the Bank of England warns against the loss of value of cryptocurrencies. In October, Cunliffe said that crypto could collapse and asked the regulatory authorities to act quickly found an order framework for you.
"It's not there yet, but it takes time to develop standards and regulations," he also told the BBC. "We really have to roll up and continue our sleeves so that if this becomes a much larger topic, we actually have the regulatory framework to contain the risks."
Cunliffe has previously warned that cryptocurrencies may be risks to the financial stability. In July he said cryptos that not big enough represent the financial stability. In November, however, he said that they were move closer to one threat.
In her report on financial stability published on Monday, the Bank of England explained:
cryptoassets are currently limited risks to British financial stability. However, they pose a number of risks to financial stability if they continue to grow with their current high pace and network more with the financial system in the broader sense
What do you think of Sir Jon Cunliffe's comments to Bitcoin and Krypto? Let us know in the comment area below.
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