The Deputy Governor of the Bank of England (BE) believes that the current bearish trend in the crypto market is similar to the dot-com crisis of the turn of the 90s and zero. It forms the future giants of the industry.
Jon Cunliffe, at the Point Zero forum in Zurich, suggested that crypto companies that survived the crisis could become the Amazon and eBay of tomorrow.
“The analogy for me is the dot-com boom when $5 trillion was wiped out of the economy. Many companies left the market, but Internet technologies did not disappear then. Ten years later, those who survived, and among them Amazon and eBay, proved to be the dominant players in the market, ”the official said.
The Deputy Chairman of the Central Bank of England is confident that no matter what happens to cryptocurrencies in the coming months, “cryptotechnologies and finance will continue to exist, and this can lead to huge efficiency and changes in the structure of the market.” The working group on studying the potential of digital currency of the Bank of England right now, according to Cunliff, is looking for an answer to the question: create an independent digital currency of the Central Bank “with or without the transition to fiat”? Should it be similar to stablecoins and by how much?
The UK authorities, in parallel with the tightening of regulation of cryptocurrencies, intend to turn London into a place of attraction for crypto investors. Last week, the head of the Kingdom’s Ministry of Technology and Digital Economy confirmed the government’s intention to turn the country into an international cryptocurrency hub. The Governor of the Bank of England, Andrew Bailey, suggests that potential investors refrain from acquiring cryptocurrency assets as having no intrinsic value.