The Bank of England’s deputy governor has stated that crypto must be regulated in order to protect consumers as well as the wider financial system.
Jon Cunliffe (Deputy Governor of Bank of England) stated that the collapse and bankruptcy of FTX is a clear indication of the need for crypto to be included in the regulatory framework. 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, quoted in an article in the Telegraph UK-based, stated that the bank would continue to develop a central bank digital currency (CBDC) despite the massive fallout from FTX. He also acknowledged that there was no connection between crypto and this.
He said that stablecoins must meet the same standards as commercial bank money and that incoming regulation should be taken into account.
Opinion
The banking industry has been very fortunate by the fall of FTX and ongoing bankruptcies involving major players in the centralised cryptocurrency trading space.
It has allowed it call for tighter regulation to protect consumers and reduce the risk of financial system contagion.
The very real possibility of eliminating all financial privacies through the roll-out a central bank digital currency is not mentioned. 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.
Disclaimer: This article is intended for informational purposes only. This article is not intended to be used for legal, tax, investment or financial advice.

  

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’s digital currency. 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, investment, or financial advice.