Crypto threat to get closer for the financial stability-the regulatory authorities ask for now acting-regulation
Crypto threat to get closer for the financial stability-the regulatory authorities ask for now acting-regulation
The deputy governor of the Bank of England for Financial Stability, Sir Jon Cunliffe, has warned that the cryptocurrency comes closer to a threat to global financial stability due to the rapid growth of the sector. Crypto is also integrated into the traditional financial system at a rapid pace. He calls on the supervisory authorities to become active now.
Jon Cunliffe from the Bank of England warns that crypto comes closer to a threat to global financial stability
Sir Jon Cunliffe, deputy governor of the Bank of England for financial stability, spoke on Monday in the BBC program about Bitcoin and cryptocurrencies in general.
He warned that cryptocurrencies, including Bitcoin, are becoming increasingly a threat to global financial stability due to their rapid growth. Cunliffe said:
In my opinion, they are not a risk of financial stability at the moment, but they grow very quickly and are becoming more and more integrated into what I could call the traditional financial system.
The Bank of England official warned that the volatility of crypto-assets could soon spread to traditional markets. He asks the supervisory authorities to take measures and explains:
The point where they represent a risk is moving closer. I think that regulatory authorities and legislators have to think very carefully about it.
in July, cunliffe
He also explained on Monday that companies such as Meta, formerly Facebook, launch their own stable coins like Diem. "There are suggestions for new players who are not banks, including some of the large tech platforms and some of the social media platforms to be born and spend their own money. But I think that these suggestions do not yet exist on a large scale, so I don't think we are here behind the curve," said Cunliffe. The deputy governor of financial stability also commented on the digital currencies of the central banks (CBDCs). "The reason why we consider the introduction of digital pounds, the digital form of Bank of England Bargeld, is that our lifestyle and our transactions are constantly changing," he described. "The question is whether the general public, companies and households should really have the opportunity to use and maintain the safest form of money - the money of the bank of England - in their daily life. That is the question that we will invest in this task force between the finance ministry and the bank of England next year," he added. In October Cunliffe warned that Krypto could collapse , citing the lack of inner value and the extreme price volatility. He then asked the regulatory authorities to urgently determine rules for crypto-assets. The Bank of England also has a test report in October that Krypto-akts "limited" Direct risks to the financial stability of the British financial system. "Cryptoasset and the associated markets and services grow and develop quickly. Such assets are increasingly integrated into the financial system. The FPC [Bank of England’s Financial Policy Committee] judges that direct risks to the stability of the British financial system are currently limited by crrypto-assets."
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