Category: Bank of England

Economics Professor Warns ‘Cryptocurrencies May Contribute to Monetary and Financial Instability’

Economics Professor Warns ‘Cryptocurrencies May Contribute to Monetary and Financial Instability’

Cornell University’s professor of economics and former head of the IMF’s China division, Eswar Prasad, has warned that “Cryptocurrencies may contribute to monetary and financial instability.” He added that the risk is amplified if the industry is unregulated and lacks investor protection. Economist Sees Crypto Posing Risks to Financial Stability Eswar Prasad, the Nandlal P. […]

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Bank of England’s Deputy Governor Says Crypto Collapse Plausible, Regulators Need to Urgently Establish Rules

Bank of England’s Deputy Governor Says Crypto Collapse Plausible, Regulators Need to Urgently Establish Rules

Bank of England Deputy Governor Jon Cunliffe says that a collapse in the cryptocurrency market is certainly “plausible,” stating that regulators worldwide need to pursue crypto rules “as a matter of urgency.” While cryptocurrencies do not currently pose a threat to the country’s financial stability, the deputy governor says there are some “very good reasons” […]

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Bank of England leader calls crypto regulation a ‘matter of urgency’ for financial stability

Bank of England leader calls crypto regulation a ‘matter of urgency’ for financial stability

Tightening ties between traditional finance and cryptocurrency markets mean that regulators around the world can’t stop talking crypto. On October 13, Jon Cunliffe, deputy governor of financial stability at the Bank of England, spoke on the risks crypto poses to the financial system, particularly in  stablecoins, decentralized finance and derivatives trading on unbacked digital assets.  […]

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Bank of England: Crypto Assets Pose ‘Limited’ Risks to Stability of UK Financial System

Bank of England: Crypto Assets Pose ‘Limited’ Risks to Stability of UK Financial System

The Bank of England says that crypto assets pose “limited” direct risks to the stability of the country’s financial system. “Cryptoasset and associated markets and services continue to grow and to develop rapidly. Such assets are becoming increasingly integrated into the financial system,” the U.K.’s central bank described. Crypto Poses Limited Risks to UK’s Financial […]

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Bank of England announces members of CBDC working groups including PayPal, Monzo and more

Bank of England announces members of CBDC working groups including PayPal, Monzo and more

The Bank of England said Wednesday that it has staffed up a pair of third-party working groups that will collectively provide input as the U.K. central bank pursues initiatives related to central bank digital currency (CBDC). The central bank’s published lists include notables from the neobank and payments worlds, as well as several companies associated […]

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Bank of England’s Deputy Governor: Cryptocurrencies Aren’t Big Enough to Pose Financial Stability Risk

Bank of England’s Deputy Governor: Cryptocurrencies Aren’t Big Enough to Pose Financial Stability Risk

Bank of England Deputy Governor Jon Cunliffe believes that cryptocurrencies are not big enough to pose financial stability risk. “They’re not of the size that they would cause financial stability risk, and they’re not connected deeply into the standing financial system,” said the deputy governor. Crypto Poses No Financial Stability Risk, Says Deputy Governor of […]

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After U.S, Now Japan Calls for Strong Regulations of Stablecoins

In a fresh development, Japanese regulators are now stepping up efforts to regulate digital currencies, especially stablecoins. In exclusive coverage, Reuters reports that the Japanese government is closely watching the sharp growth of the crypto market and remains worried about its impact on the country’s financial system. Tokyo wants to engage with global financial regulators […]

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The Bank of England says crypto does not require action beyond monitoring

The Bank of England admitted that cryptocurrencies are no threat and hence require no further action other than monitoring.  According to its FSR report, there are signs of growing crypto interest from important payment system operators and banks. Bitcoin has been long associated with tax evasion, terrorist financing, and money laundering. For this reason, regulators […]

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BoE Deputy Governor says crypto is not a ‘financial stability risk’

Bank of England’s Deputy Governor Jon Cunliffe commented on crypto’s market status, saying it is not a financial stability risk as it does not pose relevant competition to the traditional markets, yet. He agreed with and appreciated crypto’s exponential growth however he clarified that it cannot beat the regulated market and he does not see […]

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Bank of England chief economist: CBDCs could fundamentally disrupt centuries-old banking model

Bank of England chief economist: CBDCs could fundamentally disrupt centuries-old banking model

In a speech given on his last day as chief economist of the Bank of England — after working for over 30 years at the central bank — Andrew Haldane spent a considerable amount of time ruminating over the possible consequences of Central Bank Digital Currencies (CBDCs). In a speech published June 30, Haldane said […]

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