Bitcoin has achieved a new high, but a top Bank of England official has warned that cryptocurrencies may trigger a worldwide financial disaster unless strict restrictions are implemented. In a speech at an annual banking and financial conference, Bank of England Deputy Governor for Economic Security Jon Cunliffe mentioned that crypto-assets are now valued at $2.3 trillion (about Rs. 173.052 lakh crores), which is roughly 200 percent more than they were at the start of the year.
Sir Jon Cunliffe again mentioned that Crypto technologies have the promise of significant advances in financial services. He went on to draw a clear parallel between cryptocurrency’s rising popularity and the US market surge in sub-market loans, which intensified the global economic crisis of 2008.
Cunliffe viewed the discussion about the need for asset class regulation to be inadequate, especially considering the velocity of market growth. “It needs to be pursued as a matter of urgency,” he added of speeding up-regulation.
According to Cunliffe’s speech, half of the current holders of unbacked crypto assets in the United Kingdom intend to increase their bitcoin investments. The Bank of England’s top brass also addressed unbacked crypto-assets, such as Bitcoin, which has a market cap of over 8,000. As the number of ordinary investors grows, more institutional investors are considering entering the market. Asset management firms are under pressure to investigate cryptocurrency and find a method to incorporate it into their portfolios.
Some nations, such as China, have gone so far as to declare all digital transactions illegal. This isn’t the first time a prominent financial risk expert has urged for immediate cryptocurrency regulation as regulators have often expressed concern about the volatile nature of cryptocurrencies and other unbacked assets.
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