Bank Of England Issues Warning Over Increasing Crypto Popularity.
2021-07-13 | Big Bob
The BOE [Bank of England] has issued a warning against the threat of crypto “spillovers” to mainstream financial markets in its latest bi-annual Financial Stability Report.
Within an official report
published today on Tuesday, the U.K.
financial institution pointed to bearish conditions
within the cryptocurrency market since May that have seen
the worth of Bitcoin [
BTC] fall by around 50%.
Despite "spillovers to broader financial markets" from cryptocurrencies being limited, the BOE outlined that the growing interest in crypto assets by institutional investors, banks, and payments operators
might be a concern.
"These developments could increase the interlinkages between crypto-assets and other systemic financial markets as well as institutions," the report explained.
Crypto exposure among financial institutions has been highlighted as a threat earlier, with the Bank for International Settlements' Basel Committee
outlining earlier month that banks should
put aside capital
to hide losses
completely.
Leave a comment
Your email address will not be published. Required fields are marked *
