{"id":14356,"date":"2021-11-16T06:54:07","date_gmt":"2021-11-16T06:54:07","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/bank-of-englands-cunliffe-crypto-threat-to-financial-stability-getting-closer-urges-regulators-to-act-now\/"},"modified":"2021-11-16T06:54:07","modified_gmt":"2021-11-16T06:54:07","slug":"bank-of-englands-cunliffe-crypto-threat-to-financial-stability-getting-closer-urges-regulators-to-act-now","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/bank-of-englands-cunliffe-crypto-threat-to-financial-stability-getting-closer-urges-regulators-to-act-now\/","title":{"rendered":"Bank of England\u2019s Cunliffe: Crypto Threat to Financial Stability \u2018Getting Closer\u2019 \u2014 Urges Regulators to Act Now"},"content":{"rendered":"

Bank of England\u2019s deputy governor for financial stability, Sir Jon Cunliffe, has warned that cryptocurrency is getting closer to posing a threat to global financial stability due to the sector\u2019s rapid growth. Crypto is also being integrated into the traditional financial system at a rapid rate. He urges regulators to take action now.<\/strong><\/p>\n

Bank of England\u2019s Jon Cunliffe Warns Crypto Is Closer to Becoming a Threat to Global Financial Stability<\/h2>\n

Sir Jon Cunliffe, Bank of England\u2019s deputy governor for financial stability, talked about bitcoin and cryptocurrencies in general on BBC\u2019s Today program Monday.<\/p>\n

He warned that cryptocurrencies, including bitcoin, are getting closer to becoming a threat to global financial stability due to their rapid growth. Cunliffe said:<\/p>\n

My judgement is they\u2019re not, at the moment, a financial stability risk, but they are growing very fast, and they\u2019re becoming integrated more into what I might call the traditional financial system.<\/p>\n

The Bank of England official warned that crypto assets\u2019 volatility could soon spill over into traditional markets. He urges regulators to take action, stating:<\/p>\n

So the point at which they pose a risk is getting closer. I think regulators and legislators need to think very hard about that.<\/p>\n

In July, Cunliffe said<\/a> that crypto assets were \u201cnot of the size that they would cause financial stability risk, and they\u2019re not connected deeply into the standing financial system.\u201d<\/p>\n

He also explained Monday that companies such as Meta, formerly Facebook, are launching their own stablecoins, such as Diem. \u201cThere are proposals for new players who are not banks, including some of the big tech platforms and some of the social media platforms, to come into the world and issue their own money. But I think that those proposals don\u2019t yet exist at scale, so I don\u2019t think we\u2019re behind the curve here,\u201d Cunliffe opined.<\/p>\n

The deputy governor for financial stability also commented on central bank digital currencies (CBDCs). \u201cThe reason why we might consider, why we\u2019re actively exploring introducing the digital pound, digital form of Bank of England cash, is that the way we live and the way we transact is changing all the time,\u201d he described.<\/p>\n

\u201cThe question is whether the public at large, businesses and households, should really have the option of using and holding the safest form of money \u2014 which is Bank of England money \u2014 in their everyday lives. That\u2019s the question that we\u2019ll explore in this taskforce between the Treasury and the Bank of England over the next year,\u201d he added.<\/p>\n

In October, Cunliffe warned that crypto could collapse<\/a>, citing its lack of intrinsic value and extreme price volatility. He then urged regulators to urgently establish rules for crypto assets.<\/p>\n

The Bank of England also issued a report<\/a> in October stating that crypto assets pose \u201climited\u201d direct risks to the financial stability of the U.K.\u2019s financial system. \u201cCryptoasset and associated markets and services continue to grow and to develop rapidly. Such assets are becoming increasingly integrated into the financial system. The FPC [Bank of England\u2019s Financial Policy Committee] judges that direct risks to the stability of the U.K. financial system from cryptoassets are currently limited.\u201d<\/p>\n

What do you think about Jon Cunliffe\u2019s comments? Let us know in the comments section below.<\/strong><\/em><\/p>\n

Bitcoin News
\nRegulation, Bank of England, bank of england bitcoin, bank of england crypto, BoE, cunliffe bitcoin, cunliffe crypto, cunliffe cryptocurrency, financial stability, financial system, Jon Cunliffe, Traditional Finance<\/p>\n","protected":false},"excerpt":{"rendered":"

Bank of England\u2019s deputy governor for financial stability, Sir Jon Cunliffe, has warned that cryptocurrency is getting closer to posing a threat to global financial stability due to the sector\u2019s rapid growth. Crypto is also being integrated into the traditional financial system at a rapid rate. He urges regulators to take action now. Bank of…<\/p>\n","protected":false},"author":0,"featured_media":14357,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-14356","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/14356"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=14356"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/14356\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/14357"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=14356"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=14356"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=14356"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}