Expert Warns Crypto Could Cause 2008-Level Crisis
Provided By - Video Elephant on October 15, 2021
The Bank of England’s deputy governor for financial stability John Cunliffe has warned that crypto could spark a financial crisis.
Cunliffe compared the rate of growth of the cryptoasset market to the $1.2 trillion subprime mortgage market in 2008.
The cryptoasset market has ballooned from $16 billion five years ago to $2.3 trillion today.
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, Jon Cunliffe, Bank of England’s deputy governor for financial stability.
However, Cunliffe said that governments and regulators must be careful not to classify new approaches as “dangerous”.
He went on to say that crypto could provide “radical improvements” in financial services.
Well-designed standards and regulations could and should enable risks to be managed in the crypto world as they are managed in the world of traditional finance, Jon Cunliffe, Bank of England’s deputy governor for financial stability