{"id":352442,"date":"2021-10-14T00:32:44","date_gmt":"2021-10-13T21:32:44","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/boe-deputy-gov-regulators-should-pursue-crypto-as-a-matter-of-urgency\/"},"modified":"2021-10-14T00:32:44","modified_gmt":"2021-10-13T21:32:44","slug":"boe-deputy-gov-regulators-should-pursue-crypto-as-a-matter-of-urgency","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/boe-deputy-gov-regulators-should-pursue-crypto-as-a-matter-of-urgency\/","title":{"rendered":"# BoE deputy gov: regulators should pursue crypto as a ‘matter of urgency’"},"content":{"rendered":"

“# BoE deputy gov: regulators should pursue crypto as a ‘matter of urgency’ <\/strong>”
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Jon Cunliffe, the deputy governor at the Bank of England for financial stability, said the risks of a growing crypto market on the financial system are \u201crelatively limited\u201d at the moment, but have the potential to grow very rapidly if regulators do not keep pace.<\/p>\n

In a speech to the Society for Worldwide Interbank Financial Telecommunication on Oct. 13, Cunliffe said<\/a> policymakers around the world have only just started to develop the framework needed to properly regulate digital assets, but they should pursue it \u201cas a matter of urgency.\u201d The deputy governor spoke about the risks cryptocurrencies and stablecoins may pose when connected to traditional financial systems through individuals, financial institutions, hedge funds, and banks.<\/p>\n

Given how digital assets are continuing to work their way into these institutions, sentiment over crypto volatility and otherwise could cause \u201cinvestors to sell other assets that are judged to be risky.\u201d Cunliffe referred to the interconnectedness of crypto and traditional finance as having the potential for a shock \u201ctransmitted through the financial system\u201d if something were to go wrong.<\/p>\n

One of the scenarios that Cunliffe posed was if the price of an unbacked cryptoasset were to fall to zero. In addition, price volatility \u2014 even seemingly among major cryptocurrencies \u2014 \u201ccould trigger margin calls on crypto positions forcing leveraged investors to find cash to meet them, leading to the sale of other assets and generating spillovers to other markets.\u201d<\/p>\n

\u201cFinancial stability risks currently are relatively limited but they could grow very rapidly if, as I expect, this area continues to develop and expand at pace,\u201d said Cunliffe. \u201cHow large those risks could grow will depend in no small part on the nature and on the speed of the response by regulatory and supervisory authorities.\u201d<\/p>\n

Related: <\/em><\/strong>Bank of England governor issues crypto investment warning<\/em><\/strong><\/p>\n

Cunliffe has previously argued that England\u2019s central bank should \u201cissue public digital money that can meet the needs of modern day life,\u201d implying a digital pound may be in the BoE\u2019s future. He is currently co-chairing a task force set up by the U.K. government to explore the rollout of a central bank digital currency. <\/p>\n