• Latest
crypto crash may spark market meltdown, bank of england deputy warns

Crypto Crash May Spark Market Meltdown, Bank of England Deputy Warns

October 14, 2021
ygg sea surpasses 10,000 scholarships in just six months of launch

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
mintable launches industry changing gas free minting service on ethereum

Mintable Launches Industry Changing Gas Free Minting Service on Ethereum

May 1, 2022
5 projects enabling smart contract development on bitcoin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
bitcoin atm installed in mexico's senate building

Bitcoin ATM installed in Mexico’s Senate Building

April 27, 2022
cross chain services play a crucial role in facilitating continued adoption of defi applications

Cross-Chain Services Play a Crucial Role in Facilitating Continued Adoption of DeFi Applications

April 26, 2022
justin sun launches usdd, integrating the blockchain world and the real world with the decentralized stablecoin

Justin Sun Launches USDD, Integrating the Blockchain World and the Real World with the Decentralized Stablecoin

April 25, 2022
nfts: the next musical revolution

NFTs: The Next Musical Revolution

April 24, 2022
things you should know before investing in nfts

Things You Should Know Before Investing in NFTs

April 24, 2022
what are wrapped tokens?

What Are Wrapped Tokens?

April 23, 2022
what is the future of ethereum (eth)?

What is the future of Ethereum (ETH)?

April 22, 2022
green gaming

Everything You Need to Know About Play-to-Earn on Algorand in 2022

April 21, 2022
$ape going bananas as rumors of upcoming land sale of bayc metaverse gather momentum

$APE Going Bananas As Rumors of Upcoming Land Sale of BAYC Metaverse Gather Momentum

April 21, 2022
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
CoinNewsDaily
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
CoinNewsDaily
No Result
View All Result
Home Business

Crypto Crash May Spark Market Meltdown, Bank of England Deputy Warns

coinnewsdaily by coinnewsdaily
October 14, 2021
in Business
0
crypto crash may spark market meltdown, bank of england deputy warns
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter
applications

Sir Jon Cunliffe, the Bank of England’s Deputy Governor for Financial Stability, discussed the likelihood of another market catastrophe on the scale of the 2008 global financial crisis.

A speech given at Sibos, a financial services industry conference, exhibition, and networking event organised by SWIFT for the financial services industry, the Deputy Governor stated that a massive collapse in the price of cryptocurrencies, with a close out value of almost zero, is a plausible scenario that could spread across the global financial sector like a ‘contagion.’

Related articles

ygg sea surpasses 10,000 scholarships in just six months of launch

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
5 projects enabling smart contract development on bitcoin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022

“When something in the financial system is growing very fast, and growing in largely unregulated space, financial stability authorities have to sit up and take notice. They have to think very carefully about what could happen and whether they, or other regulatory authorities, need to act.” Sir Cunliffe said.

Sir Cunliffe has been a proponent of the Bank of England owning and using crypto and blockchain technologies in order to mitigate the threats to the country’s financial stability presented by crypto. The Bank of England stated in late April that it has been actively investigating central bank digital currencies (CBDCs) in a bid to reinvigorate the country’s financial services sector post-Brexit. Sir Cunliffe was later appointed to co-chair a CBDC task force, alongside Katharine Braddick, Director General of financial services at Her Majesty’s Treasury, to oversee exploratory work on CBDCs. Sir Cunliffe was reappointed to his post in 2018 after been appointed for the first time in 2013.

Sir Cunliffe has typically been supportive of the idea of a UK digital currency in the form of a stablecoin based on the British Pound. Rishi Sunak, the Chancellor of the Exchequer (finance minister), has even gone so far as to invent the term “Britcoin” for the possible digital currency.

Sir Cunliffe also stated in his address that while the global crypto sector is accelerating its growth, it is also becoming increasingly integrated to the traditional financial system, resulting in the rise of ‘leveraged players.’

“Cryptoassets are growing fast and there is rapid development of new applications for the technology. The bulk of these assets have no intrinsic value and are vulnerable to major price corrections. The crypto world is beginning to connect to the traditional financial system and we are seeing the emergence of leveraged players. And, crucially, this is happening in largely unregulated space.” says Sir Cunliffe.

Sir Cunliffe believes that the biggest threat to financial stability is not that individual investors are exposed to these as potentially dangerous investments, but rather that large-scale acquisitions and expansions continue to be unregulated, as opposed to previous financial meltdowns such as the 2008 financial crash, which was triggered by the collapse of the sub-prime mortgage market. “The picture is less clear for financial institutions,” he says. In comparison, cryptocurrency’s current capital flow is valued at approximately $2.32 trillion (USD), which is greater than the $1.2 trillion market in sub-prime mortgage-backed securities in 2008 (see chart below). According to Sir Cunliffe, a global meltdown in the cryptocurrency sector will certainly have a significantly greater impact than the 2008 financial crisis.

“A massive collapse in cryptoasset prices, similar to what we have seen in tech stocks and sub-prime, is certainly a plausible scenario. In such a price correction scenario, the first question that arises is the degree of interconnectedness between crypto and the conventional financial sector.” the deputy governor added.

Sir Cunliffe also spoke about the growth of decentralised finance (DeFi) and the regulatory oversight that it will require in the future, noting that the Bank of England, in addition to CBDCs and stablecoins, has begun to investigate this sector as well.

“DeFi is still in its early infancy but its rapid growth means that regulators, domestically and internationally, need to think seriously now about the risks of a broad range of financial services being effected through DeFi platforms and how to ensure risks are managed in the DeFi world to the same standards as they are managed in traditional finance.” Sir Cunliffe shares.

According to Sir Cunliffe, while crypto technologies do present a limited risk of financial instability, regulatory bodies and governments should take proactive steps to develop and implement standards and regulations that would enable the crypto sector to be managed and regulated in the same way that traditional finance is managed and regulated.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Tags: bankbank digital currenciesBank of EnglandBusinessCBDCCBDCsCentral Bank DigitalCorrectionCrypto BusinessCryptocurrenciesCurrencyDecentralized financeDeFiDigital currenciesFinance MinisterInvestmentJon CunliffeRangeregulatoryRishi SunakstablecoinstablecoinsSwiftTechnologyTHE BANK OF ENGLAND
Share76Tweet47
Previous Post

Price analysis 10/13: BTC, ETH, BNB, ADA, XRP, SOL, DOGE, DOT, LUNA, UNI

Next Post

Mt.Gox Saga Reaches Another Milestone, What Now?

coinnewsdaily

coinnewsdaily

CoinNewsDaily.com is an online Crypto Coin News Website that aims to provide latest trendy news from market and around the world.

Related Posts

ygg sea surpasses 10,000 scholarships in just six months of launch
Alt Coin

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
5 projects enabling smart contract development on bitcoin
Alt Coin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
cross chain services play a crucial role in facilitating continued adoption of defi applications
Alt Coin

Cross-Chain Services Play a Crucial Role in Facilitating Continued Adoption of DeFi Applications

April 26, 2022
justin sun launches usdd, integrating the blockchain world and the real world with the decentralized stablecoin
Alt Coin

Justin Sun Launches USDD, Integrating the Blockchain World and the Real World with the Decentralized Stablecoin

April 25, 2022
what are wrapped tokens?
Bitcoin

What Are Wrapped Tokens?

April 23, 2022
what is the future of ethereum (eth)?
Alt Coin

What is the future of Ethereum (ETH)?

April 22, 2022
Load More
Next Post
mt

Mt.Gox Saga Reaches Another Milestone, What Now?

Categories

  • Alt Coin
  • Bitcoin
  • Business
  • Ethereum
  • ICO
  • Litecoin
  • Mining
  • NFT
  • Ripple
  • Tech
  • Trading

What New here?

  • YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch
  • Mintable Launches Industry Changing Gas Free Minting Service on Ethereum
  • 5 Projects Enabling Smart Contract Development on Bitcoin

Subscribe to Get More!

Loading
  • About Us
  • Contact Us
  • Privacy & Policy

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

  • bitcoinBitcoin(BTC)$22,850.00-2.25%
  • ethereumEthereum(ETH)$1,631.20-2.13%
  • tetherTether(USDT)$1.000.05%
  • binancecoinBNB(BNB)$326.22-2.68%
  • rippleXRP(XRP)$0.397509-3.26%
  • cardanoCardano(ADA)$0.392179-2.12%
  • dogecoinDogecoin(DOGE)$0.092381-3.54%
  • okbOKB(OKB)$44.501.55%
  • matic-networkPolygon(MATIC)$1.20-3.62%
  • solanaSolana(SOL)$23.30-4.27%
  • shiba-inuShiba Inu(SHIB)$0.000014-4.47%
  • polkadotPolkadot(DOT)$6.71-2.09%
  • litecoinLitecoin(LTC)$96.05-2.55%
  • tronTRON(TRX)$0.063449-2.80%
  • daiDai(DAI)$1.00-0.17%
  • cosmosCosmos Hub(ATOM)$14.30-2.00%
  • chainlinkChainlink(LINK)$6.97-3.47%
  • leo-tokenLEO Token(LEO)$3.623.60%
  • ethereum-classicEthereum Classic(ETC)$22.69-4.42%
  • moneroMonero(XMR)$166.05-4.22%
  • bitcoin-cashBitcoin Cash(BCH)$132.40-3.83%
  • stellarStellar(XLM)$0.090391-3.24%
  • crypto-com-chainCronos(CRO)$0.080718-3.11%
  • filecoinFilecoin(FIL)$5.25-4.83%
  • algorandAlgorand(ALGO)$0.259194-3.72%
  • vechainVeChain(VET)$0.023873-4.12%
  • internet-computerInternet Computer(ICP)$5.55-5.88%
  • aaveAave(AAVE)$86.06-3.03%
  • eosEOS(EOS)$1.08-3.10%
  • elrond-erd-2MultiversX(EGLD)$44.47-4.40%
  • theta-tokenTheta Network(THETA)$1.09-4.44%
  • tezosTezos(XTZ)$1.18-1.51%
  • huobi-tokenHuobi(HT)$5.59-1.97%
  • paxos-standardPax Dollar(USDP)$1.000.18%
  • bitcoin-cash-svBitcoin SV(BSV)$43.810.24%
  • havvenSynthetix Network(SNX)$2.54-7.20%
  • pancakeswap-tokenPancakeSwap(CAKE)$4.47-2.70%
  • dashDash(DASH)$61.921.45%
  • iotaIOTA(MIOTA)$0.245489-2.05%
  • makerMaker(MKR)$689.34-3.04%
  • neoNEO(NEO)$8.78-0.10%
  • zcashZcash(ZEC)$43.72-5.25%
  • zilliqaZilliqa(ZIL)$0.028619-5.90%
  • basic-attention-tokenBasic Attention(BAT)$0.285837-3.30%
  • nemNEM(XEM)$0.0411651.07%
  • compound-governance-tokenCompound(COMP)$52.52-2.64%
  • Elrond ERDElrond ERD(ERD)$0.0259290.00%
  • kusamaKusama(KSM)$35.96-5.86%
  • qtumQtum(QTUM)$2.881.85%
  • bitcoin-goldBitcoin Gold(BTG)$17.21-2.14%
  • sushiSushi(SUSHI)$1.43-5.71%
  • wavesWaves(WAVES)$2.64-7.23%
  • golemGolem(GLM)$0.257538-8.38%
  • omisegoOMG Network(OMG)$1.8114.94%
  • ftx-tokenFTX(FTT)$1.89-21.50%
  • yearn-financeyearn.finance(YFI)$7,586.34-3.29%
  • ontologyOntology(ONT)$0.2335062.23%
  • digibyteDigiByte(DGB)$0.010531-4.67%
  • umaUMA(UMA)$2.08-4.42%
  • ethlendAave [OLD](LEND)$0.53-3.08%
  • UniswapUniswap(UNI)$2.4438.80%