Bank of England Vice President Jon Cunliff likens the current crypto market crash to the dot-com crash in the late 1990s, suggesting that survivors could evolve into tomorrow’s “Amazon and eBay.” did.
“The analogy for me is the dot-com boom when $ 5 trillion has been wiped out,” Cunliffe said at the Point Zero Forum in Zurich on Wednesday. Bloomberg.. “Many companies have entered, but technology hasn’t disappeared.”
Ten years later, he added, “the survivors, Amazon and eBay, turned out to be the dominant players.”
“Cryptocurrency and finance will continue, which can lead to enormous efficiency and changes in market structure,” he added, no matter what happens to cryptocurrencies in the coming months.
Bank of England cryptocurrency plan
Cunliffe also discussed the Bank of England’s current thinking. Stablecoin And Central Bank Digital Currency (CBDC). In April 2021, the Bank of England launched a task force to explore the potential of the CBDC. According to Cunliffe, one of the issues under investigation is an independent CBDC with “lamp on or off fiat money” or “flexible enough” to be used with private stablecoins. Whether to create it.
“The question is, is it better to better optimize private stablecoin in a particular area and link it to the central bank ledger in some way? Or do we need to provide a base?” Cunliffe Said.
Earlier this year, the Bank of England announced that it would intervene to oversee the collapsing Stablecoin if the issuer “reached a systematic scale.” Following a comment from Bank of England Governor Andrew Bailey in June 2021, Stablecoin should be regulated in the same way as payments processed by banks.
Cryptographic market in turmoil
BitcoinThe world’s largest cryptocurrency has lost about 70% of its value since it peaked at about $ 70,000 last November and is currently changing trading at $ 20,720 per CoinMarketCap.
The cumulative market capitalization of all digital assets, which once approached $ 3 trillion, has dropped dramatically over the past eight months, amid the collapse of the Terra ecosystem and the liquidity crisis between several large crypto companies. , Below $ 1 trillion in early June. ..
The crash has sent a shock wave to the entire crypto industry, and many companies are working to reduce staff or otherwise costs.
The deteriorating business environment has also seen many established crypto companies lose their reputation.
For example, crypto exchange CoinbaseOne of the largest players in the crypto industry, it had a market capitalization of approximately $ 90 billion in November 2021. Since then, the company’s valuation has plummeted more than four times to $ 13.59 billion, according to data from Companiesmarketcap.
Cunliffe is the latest celebrity who provides his view of how the latest developments in crypto space will affect the crypto business.
Mark Cuban, the owner of the Dallas Mavericks billionaire and investing in several crypto projects, recently joined the discussion, saying, “It was backed by cheap and easy money, but with a valid business outlook. Companies that didn’t have it will disappear. “
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