Sumary of Bank of England’s Deputy Governor Says Crypto Collapse Plausible, Regulators Need to Urgently Establish Rules:
- Bank of England Deputy Governor Jon Cunliffe says that a collapse in the cryptocurrency market is certainly “plausible,” stating that regulators worldwide need to pursue crypto rules “as a matter of urgency.
- ” While cryptocurrencies do not currently pose a threat to the country’s financial stability, the deputy governor says there are some “very good reasons” to think that this might not be the case for very much longer.
- Crypto Collapse Plausible, Crypto Rules Are ‘a Matter of Urgency’ Bank of England Deputy Governor Jon Cunliffe talked about cryptocurrency and its regulation on Wednesday at the SIBOS conference.
- As an example of how long it takes to establish new rules, Cunliffe said that last week global regulators proposed that the safeguards they apply to systemic clearing houses and payment systems should also be applied to stablecoins.
- The Bank of England recently published a report stating that the risks to the stability of the U.K. financial system from cryptocurrencies are currently limited.
- Cunliffe himself also previously said that the crypto industry was not big enough to pose a threat to the country’s financial stability.
- Cunliffe further opined: Indeed, bringing the crypto world effectively within the regulatory perimeter will help ensure that the potentially very large benefits of the application of this technology to finance can flourish in a sustainable way.