October 20, 2021
Speaking at Sibos on October 13th, the England Central Bank’s Deputy Governor for financial stability, Jon Cunliffe, said: “There are well-founded concerns around unbacked crypto assets in relation to investor protection, market integrity and financial crime.
“Investors losing money on speculative investments does not, in and of itself, constitute a financial stability problem, though it may well be a major concern for authorities responsible for investor protection.” Cunliffe acknowledged work already begun by regulators, such as the UK’s cross-regulator Cryptoassets Taskforce, but warned: “It needs to be pursued as a matter of urgency.”
In his concluding statements, Cunliffe weighed up the “novel”, “great” opportunities presented by crypto against its rapidly growing prices.
In one breath, the Bank of England deputy governor acknowledged: “Bringing the crypto world effectively within the regulatory perimeter will help ensure that the potentially very large benefits of the application of this technology to finance can flourish in a sustainable way.”
But in another, he concluded: “One cannot help observing that in the two years it has taken to develop the draft CPMI-IOSCO guidance, stablecoins have grown sixteen-fold, although admittedly only to a relatively small amount.”
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