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Cryptocurrency crashes can cause the next market collapse

Cryptocurrency crash could cause the next market collapse, Bank of England deputy governor warns


Bitcoin and other cryptocurrencies could cause the next financial crisis, according to top executives at the Bank of England.

In yesterday’s speech, Vice-Governor Sir John Kanriff said that the sharp drop in cryptocurrency prices to zero is a “certainly plausible scenario” and a “potential transmission” across the global financial sector. I said there was.

Cunliffe said the impact on individual investors in the event of a cryptocurrency collapse is unlikely to pose a “financial stability risk.” But he added:

Volatility: Sir Jon Cunliff, Deputy Governor of the Bank of England, said the sharp drop in cryptocurrency prices to zero is a “certainly plausible scenario”.

He compared the possible cryptocurrency crash with other financial meltdowns and emphasized that the cryptocurrency market is now worth £ 1.7 trillion, which is larger than the collapsed 2008 subprime mortgage market. ..

“As the financial crisis has shown us, it does not have to occupy most of the financial sector to cause financial stability problems.”

Cunliffe said cryptocurrency regulation “needs to be pursued as an urgent issue.”

“When something in the financial system is growing very rapidly, in an almost unregulated space, financial stability authorities need to be careful.”

The value of the cryptocurrency market has increased by 200% this year.

Comments came from banks abolishing private meetings with banks and financial institutions.

According to one source, the decision followed a meeting between bankers and top US investment banks, probably based on the Chatham House rules.

However, as a result, we can see that the policy information has been revealed.

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Cryptocurrency crashes can cause the next market collapse

Source link Cryptocurrency crashes can cause the next market collapse

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