Bitcoin extremists say the Bank of England will scramble to buy Bitcoin before it reaches $1 million
Bitcoin expert Max Kaiser It has been stated that the Bank of England (BoE) will scramble to buy Bitcoin before the digital asset transaction price reaches $1 million.
Before his comment, Jon Cunliffe, Bank of England’s deputy governor for financial stability, warned that unless strict regulations were introduced, cryptocurrencies could trigger a global financial crisis. Although regulatory agencies in many countries/regions have begun to formulate policies to manage the rapid growth of cryptocurrencies, Cunliffe said it must be implemented as a matter of urgency.
Bank of England warns against using cryptocurrency
The Deputy Governor of the Bank of England called for strict supervision of Bitcoin and other cryptocurrencies. According to the Guardian, Cunliffe has played a central role in monitoring cryptocurrencies in recent years as an advisor to the G20 Financial Stability Board and the central bank’s general advisory body (Geneva-based Bank for International Settlements).
Related Reading | Bank of England seeks to strengthen cryptocurrency regulation
In a speech on Wednesday, October 13, Cunliffe compared the growth rate of the crypto market (from US$16 billion five years ago to US$2.3 trillion today) with the US$1.2 trillion subprime mortgages before the 2008 financial crisis. The market growth rates were compared. He said that financial markets are likely to be hit by events of a similar scale within a few years.
“When something in the financial system grows very fast and grows in a largely unregulated space, the financial stability authorities must sit down and pay attention,” he said.
He also mentioned that most crypto assets have no intrinsic value and may become worthless overnight. He emphasized how the crypto world began to connect with traditional financial systems, even if the space remains largely unregulated.
The head of the banking industry added, “Currently, financial stability risks are relatively limited, but if, as I expected, the field continues to develop and expand rapidly, they may grow rapidly. The degree of growth of these risks will largely depend on Due to the nature and response speed of the regulatory and supervisory agencies.”
Related Reading | The governor of the Bank of England is still not a fan of Bitcoin
His comments are similar to those of Andrew Bailey, Governor of the Bank of England. In May of this year, Bailey called cryptocurrencies dangerous and warned that investors should be prepared to lose all their funds due to the lack of intrinsic value of digital assets.
Bitcoin experts’ response
Bitcoin expert Max Keizer responded to the recent warning from the Deputy Governor of the Bank of England regarding cryptocurrencies statement Go to Express.co.uk.
He said: “Bitcoin is designed to cause the collapse of the current fiat currency banking system. This is a mathematically guaranteed result.”
BTC trading at over $60.8K | Source: BTCUSD on TradingView.com
Kaiser hinted that the Bank of England is grieving because Bitcoin killed the central bank. “Bitcoin killed the central bank. The Bank of England is in the second of the five stages of grief, the anger stage.”
He further stated that the Bank of England will eventually consider adopting Bitcoin.
“The bargaining phase will be their central bank digital currency phase. When the price exceeds 363,000 pounds (500,000 US dollars), there will be a depression, and then the Bank of England scrambles to buy bitcoin before the price of Bitcoin exceeds 727,000 pounds (1 million US dollars). Currency,” Kaiser said.
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