Central Bank governors often don’t have a very good take on Bitcoin and other cryptocurrencies. Most of them often think it has no future or it’s a scam. And now we have the Bank of England Deputy Governor, Sir Jon Cunliffe, saying that crypto prices could fall to zero. He also added that crypto growth is happening rapidly and it’s important to regulate the space as fast as possible to contain the risks. Jon also thinks that it is going to become a much bigger risk in the future.
Deputy Governor on crypto
In the recent BBC program, Jon Cunliffe warned about the price of crypto crashing in the future. He said that crypto is growing at a very fast rate and becoming mainstream, and this could posses danger to the financial stability of UK households. Currently, over 2.3 million people hold crypto in the UK with an average holding of $397. That is a big number and for many, it will be a huge deal if their crypto suddenly crashes to zero.
The Deputy Governor says that what worries him is the fact that if crypto gets integrated into the financial system then its crash could affect other markets too. Jon has said the same thing in the past as well and at that time too the main focus was to build a regulatory system. But he also said that regulations take a lot to design and therefore it might take time.
Well, it is important to note that Jon Cunliffe said in July that cryptocurrencies are not big enough to pose any risk. But now he thinks they are big enough to become a threat. So, I am not sure where to draw the line.
If you are not trading or holding shitcoins/meme coins then it is highly unlikely that your holdings will drop to zero. Popular and useful crypto tokens and coins have adoption and demand so the risk factor isn’t as large as smaller caps or hype coins.
What are your thoughts as Jon says that Crypto prices could fall to zero? And do you think that large caps and functionally superior coins could go to zero? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Ethereum is more undervalued than Bitcoin, says Cathie Wood.