Metalla Royalty & Streaming CEO Brett Heath warned in an interview with Kitco News that cryptocurrency could trigger the next financial crisis. The businessman compared the popularity of digital assets to the dot-com bubble in the early 2000s and the 2008 mortgage crisis. According to Heath, a distinctive feature of all crises is the massive introduction of a product or technology that is poorly understood, writes RBC Crypto.
“If we go back to the mortgage crisis of 2008, then we had a massive introduction of mortgage-backed securities backed by debt obligations. And as soon as society accepted this new financial product, it collapsed. It was a huge problem, ”explained the CEO of Metalla Royalty & Streaming.
A serious financial panic can be caused by a situation in which the capitalization of digital assets will grow to $ 3-10 trillion, and then cryptocurrencies will simply be erased, says Heath. According to him, this will lead to tangible financial consequences.
Brett Heath has questioned the amount of liquidity that the cryptocurrency market has accumulated since the beginning of 2020, as he considers cryptocurrencies “a license for the private sector to print money.”
Metalla Royalty & Streaming is a Canadian company founded in 1983. It offers access to precious metals through royalties.
Earlier, the head of the Bank of Korea, Lee Joo Yeol, called trading in cryptocurrencies with leverage as a threat to the country’s financial system. The excessive level of leveraged cryptocurrency trading is putting the financial system at risk due to the volatility of digital assets, Li Zhu Yele said.
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