Unlike Andrew Bailey, Governor of the Bank of England (BoE) to cryptocurrencies and blockchain positive approach to technology BoE vice president Jon Cunliffe made important statements.
Speaking at the AFME Conference today, Jon Cunliffe said that blockchain technology, which is the foundation of cryptocurrencies for fast trading in all financial markets, is undesirable given the challenges it will pose.
However, the BoE vice president, who believes that cryptocurrencies and blockchain technology are important, said that these issues should be addressed by regulators before cryptocurrencies gain systemic importance.
“If the regulatory framework for crypto is done properly, the risk of cryptocurrencies experiencing ‘confidence-shattering crashes’ will also decrease.
Reducing these risks could also help crypto innovation.”
So, according to Cunliffe, despite the clear benefits of crypto, the risks in the market need to be managed.
In this context, Cunliffe considers that central banks and regulators “do not have a crystal ball.”
However cryptocurrency Emphasizing that the emerging evidence that technological innovation in its markets is important to the financial system is clear, the BoE vice president believes that this clear evidence indicates the possibility of fundamental transformation in the financial system.
BoE vice president Jon Cunliffe previously warned that the rapid growth of cryptocurrencies could pose a threat to the established financial system.
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