Deputy Governor of the Bank of England says crypto may pose threat to the financial system

In an interview, the deputy governor of the Bank of England shared his stance on crypto and described crypto as a threat to the traditional financial system.

Since the origin of the crypto industry, crypto is under the radar of the central banks. Almost all the central banks of the world are not in favour of crypto adoption. Most of the traditional financial experts believe that crypto is trying to replace the traditional financial system or it is trying to violate the traditional laws of the financial monetary system.

Sir Jon Cunliffe, the Deputy Governor for Financial Stability at the Bank of England (BoE), appeared in an interview with the BBC’s “Today” program on 15 November.

Cunliffe said that there are huge chances of risk for the traditional financial system because of the integration of the crypto ecosystem with the traditional financial ecosystem.

“(cryptocurrencies) are growing very fast, and they’re becoming integrated more into what I might call the traditional financial system.”

Cunliffe further asserted that such risks are near and in this situation regulators and legislators needed to work to prohibit such operations to avoid future risk.

On the issue of the rise of the adoption of stabelcoins, Cunliffe dismissed any risk. Hower asserted that many news companies like social media platforms are issuing their own money is a problem.

“There are proposals for new players who are not banks, including some of the big tech platforms and some of the social media platforms to come into the world and issue their own money,”

Cunliffe only targeted the risks associated with the price volatility, a lack of consumer protection laws, and the absence of anti-money laundering (AML) laws in the DeFi industry.

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