Deputy Governor of England John Canley said that fast-growing cryptocurrency assets may be dangerous for the well-established financial system, it transfers “BBC” .
Currently, in such assets such as Bitcoin, a slight amount of British households is stored, but they are becoming increasingly popular. “If their cost falls sharply, it may have consequences. Bank of England should be ready to restrain these risks,” Kaliff said.
according to the estimates of the Central Bank of England, currently about 0.1 percent of the state of British households are in cryptocurrency. About 2.3 million people keep part of assets in cryptocurrency, and the average amount per person is about 300 pounds sterling (29 thousand rubles). However, he stressed that cryptocurrencies “grow very quickly”, and the fund managers want to understand whether they should keep part of their portfolios in cryptocurrencies.
Digital currency price can fluctuate in fairly wide limits, and may fall to zero. Claniff warned that it was worth worrying when cryptocurrency will be integrated into the financial system when the fall in its price can really affect other markets and affect the established participants of the financial market. So far, this has not happened, but time is required to develop standards and rules. “We really need to roll the sleeves and take up the case so that by the time it becomes a much more serious problem, we have already had a regulatory framework for holding risks,” added Deputy Governor of England.
Earlier, Cantiff compared the growth rates of cryptocurrency market as in 2008 in the United States began massively issuing mortgage loans to people with a high risk of non-payment of loans. Over the past five years, the capitalization of the cryptocurrency market has grown from 16 billion dollars to 2.3 trillion. The US Mortgage Market was similarly expanded – for the year it increased by 1.2 trillion dollars. The official added that it was a big lover along with interconnectedness in the banking system led to the collapse of the US financial system in 2008.