Bitcoin Cryptocurrency Could Cause Next Financial Crash; Details Here

New Delhi: The Daily Mail reports that Bitcoin and other cryptocurrencies may cause the next financial meltdown, according to a senior Bank of England official. Deputy Governor Sir John Cunliffe said a massive crash in cryptocurrency prices to zero is ‘certainly a reasonable scenario’ and that there is a ‘potential for contagion’ across the global financial sector.Also Read – Explained: What is Airdrop in Crypto, New Money Earning Tool? Watch the video

  • Per the report, Cunliffe said the damage to individual investors in the event of a crypto crash is unlikely to cause a ‘financial stability risk’. But, he added, “the picture is less clear for financial institutions.”
  • Compare the potential crash of cryptocurrency to other financial crashes, and highlight that the cryptocurrency market is now worth $1.7 trillion, larger than the mortgage market in 2008 when it crashed.
  • As the financial crisis has shown us, you don’t have to account for a large percentage of the financial sector to raise financial stability problems.
  • Cunliffe said crypto regulation “needs to follow up as a matter of urgency.”
  • “When something in the financial system is growing too fast, in a largely unregulated space, the financial stability authorities have to pay attention.”
  • The value of the cryptocurrency market has increased by 200 percent this year.

Also Read – Bitcoin Price Drops Around Rs 4 Lakh in 1 Week. Why do prices go down? know here Also Read – Cryptocurrency Bill India: One in Three Urban Indians Oppose Cryptocurrency Law