Sir Jon Cunliffe, deputy governor of the Bank of England responsible for financial stability, warned that due to the rapid growth of the industry, cryptocurrencies are getting closer and closer to posing a threat to global financial stability. Encryption is also rapidly integrating into traditional financial systems. He urged regulators to take immediate action.

Jon Cunliffe of the Bank of England warns that cryptocurrencies are closer to becoming a threat to global financial stability

Sir Jon Cunliffe, Bank of England’s Deputy Governor for Financial Stability, spoke about Bitcoin and cryptocurrencies on the BBC’s Today program on Monday.

He warned that cryptocurrencies, including Bitcoin, are getting closer and closer to becoming a threat to global financial stability due to their rapid growth. Conliff said:

My judgment is that at present they are not financial stability risks, but they are growing very fast, and they are becoming more integrated into what I call the traditional financial system.

Bank of England officials warned that the volatility of crypto assets may soon spread to traditional markets. He urged regulators to take action and pointed out:

Therefore, the point at which they constitute a risk is getting closer. I think regulators and legislators need to consider this very seriously.

July, Conliff Said The scale of encrypted assets “will not lead to financial stability risks, and they are not deeply connected to the permanent financial system.”

He also explained on Monday that companies such as Meta (formerly Facebook) are launching their own stablecoins, such as Diem. “Some people suggest that new non-bank participants, including some large technology platforms and some social media platforms, enter the world and issue their own currency. But I don’t think these proposals have yet to exist on a large scale, so I don’t think we are behind the curve here. ,” Cunliffe thought.

The deputy governor responsible for financial stability also commented on the Central Bank Digital Currency (CBDC). “The reason why we are thinking about why we are actively exploring the introduction of the digital pound, the digital form of Bank of England cash, is because our lifestyle and transaction methods are constantly changing,” he described.

“The question is whether the general public, businesses and households should really choose to use and hold the safest form of currency in their daily lives-the Bank of England currency. This is what we will have between the Ministry of Finance and the Bank of England next year. Issues discussed in the working group,” he added.

In October, Cunliffe warned about encryption May crash, The reason is its lack of intrinsic value and extreme price fluctuations. He then urged regulators to urgently formulate rules for crypto assets.

The Bank of England also issued a report It was stated in October that encrypted assets pose a “limited” direct risk to the financial stability of the UK financial system. “Encrypted assets and related markets and services continue to grow and develop rapidly. Such assets are increasingly being integrated into the financial system. Flexible circuit boards [Bank of England’s Financial Policy Committee] The judge believes that the current direct risks of encrypted assets to the stability of the UK financial system are limited. “

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