Friday, October 22, 2021
News

Bitcoin could cause the next financial crash

   SocialTwist Tell-a-Friend    Print this Page   COMMENT

New Delhi | Thursday, 2021 10:15:05 PM IST
Bitcoin and other cryptocurrencies could cause the next financial crash, according to a top Bank of England official, Daily Mail reported.

Deputy Governor Sir Jon Cunliffe said a massive collapse in the price of cryptocurrencies to as low as zero is 'certainly a plausible scenario' and that there was 'a possibility of contagion' across the global financial sector.

As per the report, Cunliffe said the hit to individual investors if cryptocurrencies collapse would be unlikely to cause a 'financial stability risk'. But he added: 'The picture is less clear for financial institutions.'

He compared a possible crypto crash with other financial meltdowns, and highlighted that the crypto market is now worth e1.7 trillion, larger than the subprime mortgage market in 2008 when it collapsed.

As the financial crisis showed us, you don't have to account for a large proportion of the financial sector to trigger financial stability problems.'

Cunliffe said regulation of cryptocurrency 'needs to be pursued as a matter of urgency'.

'When something in the financial system is growing very fast, in a largely unregulated space, financial stability authorities have to take notice.'

The value of the cryptocurrency market has increased by 200 per cent this year.

--IANS san/dpb

( 212 Words)

2021-10-14-16:10:06 (IANS)

 
  LATEST COMMENTS (0)
POST YOUR COMMENT
Comments Not Available
 
POST YOUR COMMENT
 
 
TRENDING TOPICS
 
 
CITY NEWS
MORE CITIES
 
 
 
MORE BUSINESS NEWS
Bull Trends: Mondays, Thursdays seen as ...
Asian cues, mixed results subdue equity ...
Economic recovery widened in Q2FY22 as C...
Acuite retains India's FY22 growth forec...
Global cues, inflationary concerns dent ...
The Postcard Hotel wins multiple honours...
More...
 
INDIA WORLD ASIA
Minister asks MP police to take action a...
Seizing bikes, internet shutdown not lin...
J-K: Medical teams should be credited, s...
SKM suspends Yogendra Yadav for a month...
PM Modi to address the nation at 10 AM t...
Petrol, diesel prices hiked again...
More...    
 
 Top Stories
Petrol, diesel prices hiked again... 
PM Modi to address the nation at 10... 
Thailand to allow vaccinated visito... 
SKM suspends Yogendra Yadav for a m... 
J-K: Medical teams should be credit... 
Telangana State Prisons Department ... 
Hong Kong: 16 more pro-democracy co... 
Hong Kong man jailed for 7 years af...