Cryptocurrencies currently do not pose a serious risk to Britain’s financial stability, but as their influence grows, regulation will have to be tightened. This is stated in the report of the Bank of England.
“Regulation must evolve quickly enough, both domestically and at global level, to address the risks that they [cryptocurrencies] may pose in the future,” noted the experts.
Officials said they intend to pay close attention to developments, including the relationships between cryptocurrencies and the United Kingdom’s financial system. In this way the BoE aims to ensure resilience to potential systemic risks.
FPC says that financial institutions should exercise caution and prudence regarding any adoption of these assets — the document states.
Earlier BoE Governor Andrew Bailey stated that cryptocurrencies have no intrinsic value, therefore investments in them carry significant risk.
In June he rejected the notion that Bitcoin is money, but acknowledged that stablecoins may occupy a niche in the financial system.
Back in September, the Bank of England and Her Majesty’s Treasury announced participants of forums to study the technological and other aspects of CBDC. Among them were representatives of Visa, Mastercard, PayPal, Google and other companies.
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