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Globally, the crypto market is in great turmoil. Several crypto investors have lost billions of dollars. However, it is uncertain if these crypto investors would bounce back.
Meanwhile, the Bank of England believes these investors may recover to become huge companies. This was the case after the dot-com’s collapse, which gave rise to Amazon and eBay.
Cunliffe Bullish On The Future Of Crypto Crash Survivors
Although the crypto market is declining, crypto supporters and investors hopefully await the bull run. Meanwhile, Jon Cunliffe, Deputy Governor of the Bank of England, seems bullish on crypto survivors.
Cunliffe believes they could become major tech companies in years to come. According to Bloomberg, Cunliffe supported his argument by citing the cases of Amazon and eBay.
Both companies rose after the collapse of dot-com in the 2000s. While talking at Zurich Point Zero Forum on June 22nd, the central banker stated:
“I believe that the survivors of the crypto crash can rise to be giant firms tomorrow. My analogy is the case of the dot-com collapse, where $5 trillion was lost. Although companies collapsed, the technology remained. After 10 years, the survivors, eBay and Amazon became dominant players.”
Also, Cunliffe acknowledged that crypto technology had huge potential and applications in the financial system. He expects the crypto sector and its technology to continue over the years.
Meanwhile, the United Kingdom is exploring the chances of issuing a retail CBDC. Additionally, the central bank plans to release a consultation paper before 2023.
Bank Of England’s View On Digital Currencies
According to Finbold, Governor Andrew Bailey of BoE discredited digital currencies. While talking to the country’s Parliamentary Committee, he said that crypto has no actual value.
He cited the recent downward trend in the crypto market, where investors lost millions. Last year, the deputy governor of the BoE commented on the increased adoption of cryptocurrencies.
Cunliffe cited that this rapid growth could seriously harm the country’s financial system. He also noted that the crypto market was unstable and needed regulation.
Simultaneously, another report from the central referred to BTC as worthless. It added that the flagship currency does not have the properties of a currency.
Hence, it is not suitable for payment purposes.However, the country seems to be in support of stablecoins. Several government officials have called for a sector regulation following the Terra collapse.
Also, reports state that the country is considering legalizing stablecoins for payment purposes. This would be a welcome development for the crypto industry.
Also Read: Coinbase Is ‘Sunsetting’ COINBASE Pro By This Year-End
