The Deputy Governor of the Bank of England says that people who invest in cryptocurrencies should be aware of the potential dangers and be prepared to lose everything. He believes that bitcoin will soon become a worthless asset and could lead to financial collapse.
Bitcoin The popular cryptocurrency peaked at $ 67,000 in early November, but that changed somewhat following reports of the Amicron Corona variant.
“Sir John Connelly, the Bank of England Deputy Governor, says:
“The central bank must be prepared for the potential risks associated with the increasing value of crypto assets and their growing popularity. “The price of cryptocurrencies can be very volatile, and even in theory [bitcoin] may even reach zero.”
The market value of crypto assets has increased tenfold since early 2020, reaching about $ 2.6 trillion, which is about 1% of the world’s financial assets. About 0.1% of the wealth of British households is invested in bitcoin and similar cryptographic assets such as Atrium and Bainance Coin. About 2.3 million users have cryptocurrencies and an average of ۰۰ 300 per digital currency per user.
The Bank of England’s fiscal policy committee, set up to monitor potential risks following the 2008 financial crisis, spoke at last week’s meeting about cryptocurrencies threatening Britain’s financial stability. According to the committee, the rapid rise in the price of such assets could pose many risks.
The Bank of England believes that large institutions should take a cautious approach to accepting cryptocurrencies and monitor market developments on a regular basis.
The UK Advertising Board has also warned about cryptocurrencies and does not approve ads for exchanges and financial institutions.
