Sir Jon Cunliffe, deputy governor of financial stability at the Bank of England (BoE), said Bitcoin - and other cryptocurrencies in general - could cause a financial crisis unless they face tough government regulations.
According to Jon Cunliffe, the statement is true, even though the cryptocurrency industry represents only a small percentage of global finance.
“Of course the $2.3 trillion needs to be seen in the context of the $250 trillion global financial system. But, as the financial crisis has shown us, you don't have to represent a large proportion of the financial sector to trigger financial stability problems,” said Sir Cunliffe.
Last week, the BoE's Financial Policy Committee (FPC) suggested that the crypto markets posed only "limited risk" for the UK.
This is in stark contrast to the views of Jon Cunliffe, who show that the different perspectives taken by the Lieutenant Governor and the FPC suggest that the BoE is not entirely clear about the level of risk posed by cryptocurrencies. However, they serve as a warning for the market to wait for possible regulations coming from the British government.