: Bitcoin could cause the next financial crash #IndiaNEWS #Business New Delhi, Oct 14 | Bitcoin and other cryptocurrencies could cause the next financial crash, according to a top Bank of England official,

Bitcoin could cause the next financial crash #IndiaNEWS #Business
New Delhi, Oct 14 | 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 £1.7 trillion, larger than the subprime mortgage market in 2008 when it collapsed.
As the financial crisis showed us, you dont 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.
Source: IANS
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