- Bank of England’s Sir Jon Cunliffe is not happy with how crypto is posing a threat to global financial stability.
- He has warned regulators to take immediate action.
- Cunliffe attributed this to how crypto is showing rapid growth.
With the substantial rise of crypto presence these days, Sir Jon Cunliffe — the Bank of England’s deputy governor for financial stability has voiced out the sideways effect on global financial stability. He warned that crypto is giving a stunning rise, which is a threat to the health of global financial stability.
Emphatically, Cunliffe made all these statements in an open discussion that featured Bitcoin (BTC) and cryptocurrency. Speaking on the matter, he specified the threats are from Bitcoin and several other vibrant cryptos.
To fight a smooth battle on how crypto poses a threat, Cunliffe has asked fintech regulators to take quick action against crypto. Without any delay, he wants regulators to swiftly take instant measures to regulate crypto activities. Meanwhile, lots of traditional finance systems have already integrated crypto.
My judgment is they’re not, at the moment, a financial stability risk, but they are growing very fast, and they’re becoming integrated more into what I might call the traditional financial system. So, the point at which they pose a risk is getting closer. I think regulators and legislators need to think very hard about that.
In addition to what he said, the Bank of England official mentioned that in the coming days, crypto assets’ volatility will stream steadily with a huge surge into traditional finance markets. All these form part of the reason why he is eagerly urging regulators to step up.
Meanwhile, some time back, Cunliffe made a statement that crypto assets are “not of the size that they would cause financial stability risk, and they’re not connected deeply into the standing financial system.”