BoE warns that future crypto crashes could have a negative impact on the financial system

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The Bank of England’s deputy governor Jon Cunliffe stated that crypto must be regulated in order to protect consumers following FTX. He spoke at Warwick’s business school.
“While the crypto-world, as was shown during last year’s crypto snow and last week’s FTX collapse, is not yet large enough or interconnected enough to threaten the stability the financial system, its connections with mainstream finance have been rapidly developing.”
He cited the case of FTX and said that regulators should establish strict rules as soon as possible. He continued:
“We shouldn’t wait until it is connected and large before we develop the regulatory frameworks needed to prevent a cryptocurrency shock that could have a greater destabilising effect.”
Cunliffe, a UK-based Telegraph journalist, stated that the bank would continue to develop a central bank’s digital currency (CBDC) despite the massive fallout from FTX. He also acknowledged that there was no connection between crypto and this. However, it is important to note the real possibility of erasing all financial privacies through the roll-out a central bank digital cryptocurrency. Mainstream media portrays crypto as bad and CBDCs as good. Both options should be explored by anyone who is interested in the future financial system. CBDCs are coming to the public. It will be like giving up your freedom without even a whine if you don’t know what they are. This article is not intended to be used for legal, tax, financial, or any other advice.