According to Bitcoin expert Max Keiser, the Bank of England (BoE) will rush to buy Bitcoin before it reaches $1 million in value.
His remarks come after the Bank of England’s deputy governor for financial stability; Jon Cunliffe, warned that cryptocurrencies could spark a global financial crisis if strict regulations are not implemented. Although regulators in many countries have begun to implement policies to manage the rapid growth of cryptocurrencies; Cunliffe believes this must be done as soon as possible.
Bank of England Warns Against Crypto
The deputy governor of the Bank of England has called for strict regulation of Bitcoin and other cryptocurrencies. According to the Guardian; Cunliffe has been a key figure in monitoring cryptocurrencies in recent years; as an adviser to the G20’s financial stability board and; the central banks’ overarching advisory body the Bank of International Settlements in Geneva.
Cunliffe compared the growth rate of the crypto market; from $16 billion five years ago to $2.3 trillion today; to the $1.2 trillion subprime mortgage market prior to the 2008 financial crash in a speech on Wednesday; October 13. He predicted that an event of comparable magnitude would shake financial markets in a few years.
“When something in the financial system is growing very fast and growing in largely unregulated space; financial stability authorities have to sit up and take notice,” he said.
He also stated that the vast majority of crypto-assets have no intrinsic value and may become worthless overnight. He emphasised how the crypto world is beginning to connect with the traditional financial system; despite the fact that the space is still largely unregulated.
The banking chief added that there were “Financial stability risks currently are relatively limited; but they could grow very rapidly if, as I expect, this area continues to develop and expand at pace. How large those risks could grow will depend in no small part on the nature and; on the speed of the response by regulatory and supervisory authorities.”
His remarks echo those of Bank of England Governor Andrew Bailey. Bailey warned investors in May that crypto was dangerous and; that they should be prepared to lose all of their money due to the digital assets’ lack of intrinsic value.
Bitcoin Expert’s Response
In a statement to Express.co.uk; Bitcoin expert Max Keiser responded to the Bank of England’s deputy governor’s recent warning about cryptocurrencies.
He said, “Bitcoin is designed to trigger a meltdown of the current fiat money banking system. This is a mathematically guaranteed outcome.”
Keiser implies that the Bank of England is in mourning because Bitcoin has killed central banks. “Bitcoin killed central banks. The Bank of England is in the second stage of the five stages of grief, the anger phase.”
He also declares that the Bank of England will consider adopting Bitcoin in the future.
“The bargaining phase will be their central bank digital currency stage and; when that fails comes depression as the price tops £363,000 ($500,000) and; then acceptance with the Bank of England scrambling to buy Bitcoin before it tops £727,000 ($1million) per coin,” Keiser says.
Source: NEWSBTC
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