The fast-growing crypto-currency which has become a much-discussed affair globally has seen yet another restriction on its way. The latest of these developments has been seen in the England forefront.
The Bank of England has posed the risks of crypto-currency as a danger to the existing financial system, as per an official from BBC.
With the release of regular health checks on the financial system, banks have warned large institutions wishing to introduce crypto assets for fear of potentially causing a financial crisis, breaking the coronavirus. rice field. However, in the past week, it has recovered to its current level.
The use of cryptocurrency assets such as Bitcoin has paved its way to the household of the UK, making it one of the most used cryptocurrencies, according to the deputy bank governor Sir Jon Cunliffe. Statistics show that 0.1% of the UK which rounds to about 2.3 million people has been estimated to withhold approx to 300 pounds.
The Banks in England have to be ready to incur the risks involved, in event of a sharp decline in their value, which would have a huge impact on the economy.
“To influence the development of these fast-growing markets, manage risk, promote sustainable innovation, and maintain broader trust and integrity of the financial system, improve both domestically and globally. We need a regulatory and law enforcement framework that has been enforced, “said the report.
Regarding the future of cryptocurrency, the Bank of England emphasized that its rapid growth poses problems for the financial system. According to the bank, its monetary policy committee is working to ensure the stability of the UK’s financial system from the risks associated with digital currencies.