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Bitcoin Could Cause Another Financial Crisis, BOE Official Warns

Scorpio

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Bitcoin Could Cause Another Financial Crisis, BOE Official Warns​



By Jack Denton
Updated Oct. 14, 2021 11:59 am ET / Original Oct. 14, 2021 11:58 am ET


im-386091

Another day, another government official warning that Bitcoin and other cryptocurrencies could cause big, big problems.
In a speech Wednesday, a senior member of the U.K. central bank likened the rapid growth of crypto assets to the subprime mortgage-backed security market before its meltdown in 2008, which was the catalyst for the 2008-09 financial crisis.
Jon Cunliffe, a deputy governor of the Bank of England in charge of financial stability, said that crypto technologies offer the prospect of “radical improvements” in finance, but that their current applications are now a financial stability concern.
“Crypto assets have grown by roughly 200% in 2021, from just under $800 billion to $2.3 trillion today. They have grown from just $16 billion 5 years ago,” Cunliffe said. “As the financial crisis showed us, you don’t have to account for a large proportion of the financial sector to trigger financial stability problems—subprime was valued at around $1.2 trillion in 2008.”

“When something in the financial system is growing very fast, and growing in largely unregulated space, financial stability authorities have to sit up and take notice.”
Regulators calling out crypto has become something of a parlor game among regulators. SEC chair Gary Gensler has called the crypto market the “Wild West” while the IMF recently warned that cryptos could pose “financial integrity risks.”
Bitcoin has gained 1% to 57,658, while ethereum has jumped 8.2% to 3,807.79.

 

Scorpio

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I see, so chitcoin will be the cause of the crash,

and it would have nothing to do with excessive leverage, monetary printing, ignoring basic business fundamentals and instead going for financialization, and so on

got it

glad we got that out of the way
 

<SLV>

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The State cannot enslave the citizen without total control over "legal tender."
 

ds_mustang

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Crypto is going to replace the financial system. I dunno if I'd call that a crisis. I'd call it a blessing.
 

#48Fan

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Isn't this "kinda" what Bitcoin was coded to do? Bring down the banking cartel?
 

ds_mustang

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Isn't this "kinda" what Bitcoin was coded to do? Bring down the banking cartel?
IMO at the time the thinking was the banking cartel was bringing the financial system down and crypto was a lifeboat. That's still my view on crypto.
 

AurumAg

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IMO at the time the thinking was the banking cartel was bringing the financial system down and crypto was a lifeboat. That's still my view on crypto.

To me, it sounds like the bankster in the OP is saying:

"The global financial system is going to crash, and we intend to blame the crash on cryptocurrencies."
 

Goldhedge

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To me, it sounds like the bankster in the OP is saying:

"The global financial system is going to crash, and we intend to blame the crash on cryptocurrencies."
Agree on that diversion technique!

"Whoever controls the volume of money in any country is absolute master of all industry and commerce, and when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate."

James A. Garfield. President of the USA. Two weeks before he was assassinated. (1831-1881).
 

the_shootist

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What happens to crypto in the event that the online and cellular services are negatively affected by such a financial system crash. In today's social climate, I think that possibility is very real.
 

anywoundedduck

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CBs are manipulating all the significant cryptos, and will bring these cryptos down to their true value, worthless, as they all sell-off their crypto holdings at the same time, making the bottom fall out, with the new crypto FED DOLLAR waiting in the wings.
The cryptos were invented by them, and you gave them (the banksters) all your hard earned FRNs. They will convert their ill gotten FRNs to the new crypto FED DOLLAR. You lose!
Thems the cold hard facts.
Got gold? Got silver? No? Too bad.
 

tigerwillow1

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Sounds like the "Identify the scapegoat" phase. I learned about that at my workplace.