Deputy Governor of the Bank of England named the risks and benefits of cryptocurrencies
Date: 2023-09-13 Author: Karina Ziganova Categories: BLOCKCHAIN, IN WORLD
Bank of England Deputy Governor Sarah Breeden said cryptocurrencies do not pose a significant risk to financial stability, but this could change in the future. Coindesk reports this.
The woman believes that unsecured crypto assets have no value, and events such as the collapse of Terra and the American banks Silvergate and Signature have shown the risks that exist in the sector.
“Cryptocurrencies are assets that have no intrinsic value and their price can fall to zero, so investors should be prepared to lose all their money. However, this technology has the potential to benefit the financial system,” Breeden said.
She stressed that cryptocurrencies could pose a threat to financial stability if they become more closely linked to the wider financial world, especially if stablecoins are used for payments.
The woman also disagreed with the committee’s position that cryptocurrencies should be treated as gambling, and suggested treating them as a financial activity.
In August, the Bank of England tested the Ripple system for cross-border payments.
