The Bank of England’s new deputy governor Jon Cunliffe is telling regulators to get to work quickly when it comes to the growing cryptocurrency space.
Jon Cunliffe Says Regulation Is a Must
Digital currencies were ultimately created to push credit cards, fiat, and checks to the side. Basically, anything that’s issued by a bank or traditional financial institution. The world of crypto is designed to ensure that all traders and users can have the one thing that standard financial companies do not provide – monetary independence.
As it stands, when one pursues the aid or tools of a bank, they are putting themselves at risk of getting a big kick out the door. Many of these institutions will examine your past and look at things like your job history, your credit history, and any financial decisions you may have made when considering what products and tools you should have access to. These institutions are regulated by third parties, and thus they aren’t looking to take chances on those that could pose financial risks in the future.
By contrast, crypto does not care who you are, what you’ve done, or where you come from. So long as you have internet access and a valid payment method to attach, you can begin trading and selling digital currencies and have a little more say in what you do with your finances.
Regulation has become a popular topic over the past several months as the space has gotten bigger. Many people are no longer viewing bitcoin and other digital currencies as speculative assets. Rather, they see these currencies as hedge tools that can potentially keep their finances safe during times of economic strife, and when governments continue to print fiat money like it grows on trees, and when they continue to put the globe at risk of massive inflation, many see bitcoin in a whole new light.
However, the topic of regulation is also a controversial one in many ways given that regulation was never supposed to be implemented into the crypto space. Regulation, on the one hand, seems like it might be necessary to a certain degree to prevent fraud and illicit behavior. At the same time, implementing it too much can ultimately make the crypto space centralized – something it was looking to avoid from the beginning stages.
Past Work Reflects Present Ideas
Cunliffe explained in an interview:
Regulators internationally and in many jurisdictions have begun the work. It needs to be pursued as a matter of urgency. Indeed, bringing the crypto world effectively within the regulatory perimeter will help ensure that the potentially very large benefits of the application of this technology to finance can flourish in a sustainable way.
Cunliffe was involved in creating new safeguards when it came to stable coins being utilized in the British economy. He commented that it took approximately two years to get these safeguards implemented.