{"id":513768,"date":"2022-11-22T00:47:11","date_gmt":"2022-11-21T21:47:11","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/boes-cunliffe-says-regulation-can-save-crypto-from-itself-and-its-worth-the-effort\/"},"modified":"2022-11-22T00:47:11","modified_gmt":"2022-11-21T21:47:11","slug":"boes-cunliffe-says-regulation-can-save-crypto-from-itself-and-its-worth-the-effort","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/boes-cunliffe-says-regulation-can-save-crypto-from-itself-and-its-worth-the-effort\/","title":{"rendered":"# BOE\u2019s Cunliffe says regulation can save crypto from itself and it\u2019s worth the effort"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4e9947c3ee9\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4e9947c3ee9\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/boes-cunliffe-says-regulation-can-save-crypto-from-itself-and-its-worth-the-effort\/#%E2%80%9D_BOEs_Cunliffe_says_regulation_can_save_crypto_from_itself_and_its_worth_the_effort_%E2%80%9C\" >&#8221; BOE\u2019s Cunliffe says regulation can save crypto from itself and it\u2019s worth the effort &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_BOEs_Cunliffe_says_regulation_can_save_crypto_from_itself_and_its_worth_the_effort_%E2%80%9C\"><\/span>&#8221; BOE\u2019s Cunliffe says regulation can save crypto from itself and it\u2019s worth the effort &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvYWQ1ZWQ0NWQtZjg3OC00YTQ0LTg4NjEtOTU2ZTgyNDM5MGYzLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-5129e2ea>Bank of England Deputy Governor Jon Cunliffe <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bankofengland.co.uk\/speech\/2022\/november\/jon-cunliffe-keynote-speech-and-panel-at-warwick-conference-on-defi-digital-currencies\">shared<\/a> thoughts on cryptocurrency regulation and decentralized finance (DeFi) in a talk on Nov. 21. He intended to speak about stablecoins and central bank digital currency (CBDC), Cunliffe said at a conference in Coventry, but the collapse of FTX as he wrote his draft speech led him to some more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> observations as well.<\/p>\n<p>FTX and a number of other centralized crypto-asset exchanges \u201c<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ear to operate as conglomerates, bundling products and functions within one firm\u201d without the tight controls of traditional finance, Cunliffe said. There is \u201csome tentative and limited evidence\u201d that the failure of FTX has stimulated transfers to decentralized platforms, although he took little comfort in this:<\/p>\n<blockquote><p>\u201cIt is not clear the extent to which these platforms are truly decentralised. Behind these protocols typically sit firms and stakeholders who derive revenue from their operations. Moreover it is often unclear who, in practice, controls the governance of the protocols.\u201d<\/p><\/blockquote>\n<p>Regulation is needed to protect consumers, protect financial stability and encourage innovation, Cunliffe said, and:<\/p>\n<blockquote><p>\u201cWhile the crypto world, as was demonstrated during last year\u2019s crypto winter and last week\u2019s FTX implosion is not at present large enough or interconnected enough with mainstream finance to threaten the stability of the financial system, its links with mainstream finance have been developing rapidly.\u201d<\/p><\/blockquote>\n<p>The Bank of England, Financial Conduct Authority and HM Treasury are setting up a regulatory sandbox to refine \u201cthe technologies that have been pioneered and refined in the crypto world, such as tokenisation, encryption, distribution, atomic settlement and smart contracts\u201d that offer benefits for the financial system.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">The <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/bankofengland?ref_src=twsrc%5Etfw\">@bankofengland<\/a> intends to consult in detail the regulatory framework that will apply to such systemic payment systems and the services, like wallets, that accompany them, Jon Cunliffe has shared in a recent speech. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/crypto?src=hash&amp;ref_src=twsrc%5Etfw\">#crypto<\/a><\/p>\n<p>Full speech transcript <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/0UgrkRNXAv\">https:\/\/t.co\/0UgrkRNXAv<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/15Zm53gRnS\">pic.twitter.com\/15Zm53gRnS<\/a><\/p>\n<p>\u2014 CryptoUK (@CryptoUKAssoc) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CryptoUKAssoc\/status\/1594703476117889026?ref_src=twsrc%5Etfw\">November 21, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Cunliffe quoted himself comparing crypto assets to \u201cunsafe aeroplanes\u201d to demonstrate the role of regulation in innovation.  Crypto \u201cwill only be developed and adopted at scale within a framework that manages risks to existing standards,\u201d Cunliffe said. Failure to control risk could present an existential threat to crypto, he said, citing a Nov. 17 essay in the Financial Times that <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.ft.com\/content\/ac058ede-80cb-4aa6-8394-941443eec7e3\">suggests<\/a>\u00a0crypto might \u201cimplode under the pressure of its unsafe and unsound business practices,\u201d and, the authors said, financial officials should allow it to happen.<\/p>\n<p><strong><em>Related:\u00a0BoE policy talk: DeFi had better implement good governance before it\u2019s too late<\/em><\/strong><\/p>\n<p>Cunliffe said the Bank of England would release a consultative report on the issuance of a British pound CBDC toward the end of the year. He said:<\/p>\n<blockquote><p>\u201cI do want to emphasise that this work, and any future decision to introduce a digitally native pound should not be seen in the context of the status quo but rather in the context how current trends in money, payments and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> might evolve.\u201d<\/p><\/blockquote>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/boe-s-cunliffe-says-regulation-can-save-crypto-from-itself-and-it-s-worth-the-effort\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; BOE\u2019s Cunliffe says regulation can save crypto from itself and it\u2019s worth the effort &#8220; Bank of England Deputy Governor Jon Cunliffe shared thoughts on cryptocurrency regulation and decentralized finance (DeFi) in a talk on Nov. 21. He intended to speak about stablecoins and central bank digital currency (CBDC), Cunliffe said at a conference&#8230;<\/p>\n","protected":false},"author":1,"featured_media":513769,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTEvYWQ1ZWQ0NWQtZjg3OC00YTQ0LTg4NjEtOTU2ZTgyNDM5MGYzLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75044,135234,70934],"class_list":["post-513768","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bank-of-england","tag-ftx","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/513768","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=513768"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/513768\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/513769"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=513768"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=513768"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=513768"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}