The deputy governor of the Bank of England makes a comparison of the current crypto crisis to the dotcom crash. He says that the survivors could have the same fate as Amazon and eBay.
- Bank of England Deputy Governor compared crypto crisis to dotcom crisis
- He said the survivors will be able to be “dominant players” like Amazon and eBay.
- Says he expects crypto finance to continue
Much has been analyzed about the current cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. crisis. While the economist Peter Schiff has a catastrophic scenario and calls not to buy during crypto slump the CEO of SkyBridge Capital capital is most commonly defined as the large sum of money you would use to invest. , Anthony Scaramucci, asks users to be disciplined and stick with it despite the downturn at this time. Likewise, while the Communist Party of China’s newspaper assures that Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. candle the investor Michael Saylor claims the opposite.
In the face of such controversy, the Bank of England, the UK’s central bank, compared the current crypto collapse to the bursting of the dotcom bubble.
Bank of England deputy governor Jon Cunliffe said in the Point Zero Forum in Zurich yesterday that the survivors of the cryptomarket crash could become the tech companies of the future, as happened to Amazon y eBay after the dotcom collapse in the early 2000’s
The banker said:
“The analogy for me is the dotcom boom, when $5 trillion worth of value was wiped out. (…) A lot of companies left, but the technology didn’t go away. It came back 10 years later, and the ones that survived, Amazon and eBay, turned out to be the dominant players.”
According to him, this crypto technology has “huge applications and potential within the financial sector”. despite the current uncertainty. On that he said:
“Whatever happens in the coming months with cryptoassets, I expect crypto technology and crypto finance to continue. (…) They have the potential for great efficiencies and changes in market an area or arena, online or offline, in which commercial dealings are conducted. structure.”
In May of this year, Cunliffe said investors could leave cryptocurrencies in search of safer assets anticipating the depth of the crypto crisis.
The Bank of England also is developing plans for its own retail central bank digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currency currency is a medium of exchange that defines value. and will deliver a consultation paper by the end of the year. A key question being investigated is whether to produce a fully independent CBDC with an “on-ramp or off-ramp to fiat fiat currency is “legal tender” backed by a central government, such as the Federal Reserve, and with its own banking system, such as fractional reserve banking. It can take the form of physical cash, or it can be represented electronically, such as with bank credit. money”. or simply “something that’s flexible enough” to be used in private stable currencies.
Cunliffe gave an example of stable currencies being integrated into supply chain and logistics systems to maximize efficiency. “We couldn’t provide something that did all those things.” , dijo.
“The question is, is it better to have private stable currencies to be more optimized in certain areas, which are then linked to a central bank ledger a record of financial transactions that cannot be changed, only appended with new transactions. in some way? Or should we provide the basis?” Cunliffe questioned and added:
“I have the same confidence in that as a fully automated pilotless plane from London to Zurich, or a driverless car. I want to know where the liability is, if the algorithm a process or set of rules to be followed in problem-solving or calculation operations, usually by a computer. goes wrong and I crash.”
He further expressed: “I think it will be very difficult for the regulatory system to cross over in the near future.”
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