{"id":9752,"date":"2021-07-18T03:54:24","date_gmt":"2021-07-18T03:54:24","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/bank-of-englands-deputy-governor-cryptocurrencies-arent-big-enough-to-pose-financial-stability-risk\/"},"modified":"2021-07-18T03:54:24","modified_gmt":"2021-07-18T03:54:24","slug":"bank-of-englands-deputy-governor-cryptocurrencies-arent-big-enough-to-pose-financial-stability-risk","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/bank-of-englands-deputy-governor-cryptocurrencies-arent-big-enough-to-pose-financial-stability-risk\/","title":{"rendered":"Bank of England\u2019s Deputy Governor: Cryptocurrencies Aren\u2019t Big Enough to Pose Financial Stability Risk"},"content":{"rendered":"

Bank of England Deputy Governor Jon Cunliffe believes that cryptocurrencies are not big enough to pose financial stability risk. \u201cThey\u2019re not of the size that they would cause financial stability risk, and they\u2019re not connected deeply into the standing financial system,\u201d said the deputy governor.<\/strong><\/p>\n

Crypto Poses No Financial Stability Risk, Says Deputy Governor of Bank of England<\/h2>\n

Jon Cunliffe, the deputy governor of the Bank of England, talked about cryptocurrency and whether it poses financial stability risk in an interview with CNBC Wednesday. He said:<\/p>\n

The speculative boom in crypto is very noticeable but I don\u2019t think it\u2019s crossed the boundary into financial stability risk.<\/p>\n

The Bank of England\u2019s deputy governor explained that crypto speculation was mainly limited to retail investors currently. He reiterated the British central bank\u2019s position that people investing in cryptocurrency should be prepared to lose all their money<\/a>, the viewpoint expressed on several occasions by Andrew Bailey, the governor of the Bank of England.<\/p>\n

Cunliffe described:<\/p>\n

There are issues of investor protection here. These are highly speculative assets. But they\u2019re not of the size that they would cause financial stability risk, and they\u2019re not connected deeply into the standing financial system.<\/p>\n

He noted: \u201cWere we to start to see those links develop, were we to start to see it move out of retail more into wholesale and see the financial sector more exposed, then I think you might start to think about risk in that sense.\u201d<\/p>\n

<\/p>\n

Cunliffe noted that speculative crypto assets, like bitcoin, should be distinguished from stablecoins, emphasizing that stablecoins should be regulated. The deputy governor opined: \u201cI think the international community needs to at least be developing standards to actually be able to distinguish but also to have regulatory standards for that sort of product.\u201d<\/p>\n

The governor of the Bank of England previously called cryptocurrencies dangerous<\/a>, predicting that they won\u2019t last<\/a>. He said<\/a> in June, \u201cThere will inevitably be elements of tough love\u201d in crypto regulation.<\/p>\n

In May, Bailey said cryptocurrencies \u201chave no intrinsic value,\u201d but noted that it \u201cdoesn\u2019t mean to say people don\u2019t put value on them, because they can have extrinsic value.\u201d The president of the European Central Bank (ECB), Christine Lagarde, agreed with him.<\/p>\n

What do you think about the comments by the deputy governor of the Bank of England? Let us know in the comments section below.<\/strong><\/em><\/p>\n

Bitcoin News
\nRegulation, Bank of England, bank of england governor, deputy governor, Jon Cunliffe, Jon Cunliffe crypto, Jon Cunliffe cryptocurrency, Jon Cunliffe regulation, uk bitcoin regulation, uk crypto regulation<\/p>\n","protected":false},"excerpt":{"rendered":"

Bank of England Deputy Governor Jon Cunliffe believes that cryptocurrencies are not big enough to pose financial stability risk. \u201cThey\u2019re not of the size that they would cause financial stability risk, and they\u2019re not connected deeply into the standing financial system,\u201d said the deputy governor. Crypto Poses No Financial Stability Risk, Says Deputy Governor of…<\/p>\n","protected":false},"author":0,"featured_media":9753,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-9752","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\/9752"}],"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=9752"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/9752\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/9753"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=9752"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=9752"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=9752"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}