Sir Jon Cunliffe, Bank of England’s deputy governor for financial stability, warned about cryptocurrencies becoming worthless Tuesday on the BBC’s Today program. Bank of England’s Deputy Governor Warns Crypto Prices Could Tank to Zero
The Bank of England executive further pointed out that financial professionals, such as fund managers, want to know whether cryptocurrencies should be part of their portfolios.
Cunliffe began by acknowledging that cryptocurrencies have been “growing very fast,” and are becoming mainstream. He stressed that at this growth rate, they could pose a danger to the established financial system even though only about 0.1% of U.K. households’ wealth is currently in cryptocurrencies. Approximately 2.3 million people in the U.K. are estimated to hold cryptocurrencies, each holding an average amount of about 300 British pounds ($397).
The deputy governor warned that if the value of cryptocurrencies fell sharply, it could have a knock-on effect, emphasizing that the Bank of England needs to be ready to contain those risks. He stressed:
Their price can…
