Today Jon Cunliffe, Deputy Governor for Financial Stability at the Bank of England, gave a speech at the SIBOS banking conference about the risks of crypto-assets on financial stability. He said the sector’s rapid growth to $2.3 trillion means it’s time for authorities to “sit up and take notice.” While it’s small compared to the global financial system, he highlighted that in 2008 sub-prime debt amounted to $1.2 trillion.
He concluded that while a significant cryptocurrency price correction would not currently create a stability risk, he doesn’t think that will be the case for long.
“Crypto technologies offer a prospect of radical improvements in financial services. However, while the financial stability risks are still limited, their current applications are now a financial stability concern for a number of reasons,” said Cunliffe.
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