- He warned that due to the
cryptocurrency sector’s rapid growth it has come closer to posing a threat to global financial stability . - Besides, the crypto industry is also being integrated into the traditional financial system at a rapid rate.
- He urged regulators and legislators to take prompt action and establish rules for crypto assets.
- He opined that the BOE is not lagging behind as much because new players and social media companies like Meta who plan to issue their own stablecoins and money haven’t launched it yet.
- The deputy governor for financial stability also said that the reason for exploring digital pound is because the way we live and the way we transact is changing
Cunliffe emphasized clearly though that cryptocurrencies are not a threat yet, but their unprecedented growth and integration with the traditional financial system is worrisome. He said that the volatility of crypto assets could soon start showing up in traditional markets, Bitcoin.com reported.
He said that the taskforce between the Treasury and BOE will explore next year whether public, large businesses and households should really have the option of using and holding the safest form of money, which is the money backed by BOE in their everyday lives. He had warned earlier in October as well that owing to its extreme volatility and lack of intrinsic value, crypto could collapse. In the same month, BOE had issued a report stating crypto assets pose limited direct risks to the financial stability of UK’s financial system.
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