When it comes to the topic of cryptocurrency, people have different assumptions and opinions to throw your way. Some stand firm and tall in support of cryptocurrencies and what these represent, while some crucify the base idea that decentralization is a threat to the current financial manifestation. But the Bank of England’s governor has a totally different opinion when it comes to cryptocurrencies. According to Jon Cunliffe, despite the fact that cryptocurrencies are booming and their adoption is over the rise are not a direct threat to the current financial institutions yet.
Talking with CNBC, Jon explained why his opinion holds ground as the current volume of cryptocurrencies doesn’t match that of the financial world. His opinions have only surfaced recently after China issuing a severe crackdown against all crypto mining, thus posing an imminent threat to the sustainability of the crypto world.
Cunliffe is of the opinion that only retail investors are into crypto investments and trading, and thus it doesn’t pose a risk to the real financial world out there. On the other hand, Cunliffe also warns that the bank’s positions are vulnerable in this whole regard, and investors should prepare themselves for losing some great amount of money with cryptocurrencies.
Cryptocurrencies in their Present Form are Harmless
He also pressed his concerns towards the advancement of the crypto regulations, and for that, the regulatory committees around the world should unite and sit at the round table to discuss terms and regulations for the crypto sector. Without regulatory oversight, the crypto sector might become a financial abyss that takes down investors and traders.
He also pointed out that until the crypto world moves from tempting the retail investors towards the wholesale investors, there is no need to panic, and still, it won’t be a live threat to the current financial systems. Everything Cunliffe has to say comes with a yet at the end, which definitely points towards a progression of events that are taking place and are not all the way there yet, which would make cryptocurrencies a direct opponent of the financial world.