The BoE’s (Bank of England) Deputy Governor for Financial Stability, Jon Cunliffe, remarked that cryptocurrency will grow at the Point Zero Forum held between 21-23 June in Zurich that the present cryptocurrency market recalled about the days before the internet. All those who don’t exit cryptocurrency today may flourish in the same way as Amazon and eBay who did not exit the internet market when it crashed.
BoE’s Deputy Governor said:
“The analogy for me is the dot-com boom when $5 trillion was wiped off values. A lot of companies went, but the technology didn’t go away. Those that survived – the Amazons and the eBays – turned out to be the dominant players.”
Several other well-known experts and crypto investors do not believe this is the conclusion, depending on how bad things will look in the crypto industry.
BoE was among the entities who openly criticised when in November 2021, El Salvador adopted Bitcoin as official currency.
The BoE’s chief executive, Andrew Bailey, stated the dual currency system containing Bitcoin would be challenging because of its unpredictability.
Andrew Bailey said:
“What would worry me most of all is, do the citizens of El Salvador understand the nature and volatility of the currency they have.”
After voicing his worries about fluctuation, Bailey cited stablecoins and stated that only stable currency makes a convincing claim for El Salvador.
Despite the fact that El Salvador opened institutions to spread awareness about Bitcoin just after adopting it as an official currency, still, there is no proof that almost every resident is a Bitcoin master.
Crypto expanding rapidly: BoE’s Deputy Governor
In December Jon Cunliffe said that bitcoin is expanding too rapidly and may undermine the existing financial system. He remarked that incorporating cryptocurrency into the financial sector would be advantageous, but it isn’t there just yet.
He also warned that the prices might quickly fall to zero. If cryptocurrency is integrated into the traditional financial system, institutions must be equipped to reduce any dangers and the economy as a whole.
In 2019, the Financial Conduct Authority (FCA) of the United Kingdom held all cryptocurrency firms accountable for Anti Money Laundering (AML) rules. Unfortunately, just a small number of people registered for enrollment. 93% of UK officials are unaware of digital assets. There are no legitimate crypto-related rules or plans.
In March 2022 Bank of England revealed that it was researching on a crypto regulating regime.
