On Wednesday, during the Point Zero Forum in Zurich, Deputy Governor of the Bank of England (BoE), Jon Cunliffe, gave his two cents about the state of the crypto market and the impact falling assets had on projects.
He compared the current crypto winter to the dot-com crash of the late 1990s which saw some of its survivors become dominant companies. In like fashion, Cunliffe has predicted that the ongoing purge will produce immensely successful crypto companies.
In his words:
The analogy for me is the dot-com boom when $5 trillion was wiped off values. A lot of companies went, but the technology didn’t go away. Those that survived—the Amazons and the eBay—turned out to be the dominant players.
The deputy governor also shared the same views with core crypto enthusiasts who believe blockchain solutions are here to stay.
At the meeting, Cunliffe also gave his thoughts and revealed plans about stablecoins and Central Bank’s Digital Currencies (CBDC).
Knowing that the crypto technology has the possibility of huge efficiencies and the ability to change market structure, BoE launched a task force in 2021. The objective was to research the potential of stablecoins and how the traditional bank can benefit from them.
He revealed the contention from the research, posing:
The question is, are you better off having private stablecoins to be more optimized in certain areas, which then link back to a central bank ledger in some way? Or should we provide the base?
The BoE is fascinated by the stablecoin technology and released a statement earlier last year supporting the technology. It said that intervention will be provided to failing stablecoin companies “if an issuer “reached systemic scale fail.”
The Governor of the BoE, Andrew Bailey, also commented. He is calling for the regulation of stablecoins saying similar rules should apply to issuers as those being adhered by traditional banks.
It should be recalled that Maverick owner Mark Cuban said the crypto winter will lead to more insolvency. He said that “companies that were sustained by cheap, easy money—but didn’t have valid business prospects—will disappear.”
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