The Bank of England, in its latest warning, warned that those who invest in Bitcoin could lose all their assets.
Sir Jon Cunliffe, Deputy Governor of the Bank of England, stated that as the banking sector becomes more popular, Bitconi needs to be prepared for risks. “Their value could drop to zero, theoretically or practically, as their price is highly volatile,” he told the BBC. said.
Stating that large institutions should be vigilant in adopting cryptoassets, the Bank said, “We adhere to advanced regulatory and law enforcement frameworks, both domestically and globally, to manage risks, foster sustainable innovation, and maintain greater trust and integrity in the financial system and influence developments in these fast-growing markets. is needed.” used the phrases.
In a blog post shared by the bank’s senior executives on Tuesday, he stated that Bitcoin does not fulfill most of the features required by a currency and carries the risk of being volatile due to its nature. Thomas Belsham, further in that blog post
The problem is that unlike traditional forms of money, Bitcoin is not used to price things other than itself.
he wrote. On the other hand, interestingly, he stated that the scarcity of Bitcoin, which is limited to 21 million, creates an attraction for investors, but added that this feature can make Bitcoin worthless.
However, the value of the cryptocurrency market rose above $3 trillion for the first time last month, representing about 1% of global financial assets.