Bitcoin expert Max Keizer said the Bank of England (BoE) will be in a hurry to buy Bitcoin before the digital asset trades at $ 1 million.
His comments come after the Bank of England’s deputy governor on financial stability, Jon Cunliffe, warned that cryptocurrencies could cause a global financial crisis unless tough regulations are introduced. Although regulators in many countries have begun to put in place policies to manage the rapid growth of cryptocurrencies, Cunliffe said this needs to be addressed urgently.
Bank of England Warns Against Crypt
The Deputy Governor of the Bank of England has called for strict regulations on Bitcoin and other cryptocurrencies. According to the Guardian, Cunliffe has played a central role in controlling cryptocurrencies in recent years as an adviser to the G20’s financial stability commission and the central banks ’general advisory body, the Geneva Bank for International Settlements.
Related Reading | Bank Of England Seeks To Strengthen Cryptocurrency Regulations
In a speech on Wednesday, October 13, Cunliffe compared the growth rate of the crypto market, from $ 16 billion five years ago to $ 2.3 billion today, to the $ 1.2 trillion in subprime market before the financial crash in 2008. He said there is a likelihood that financial markets could be shaken in a few years of similar size.
“When something in the financial system grows very fast and grows in a largely unregulated space, financial stability authorities need to sit down and take stock,” he said.
He also talked about the majority of cryptocurrencies that have no internal value and could be worthless overnight. He stated emphatically how the crypto world is beginning to connect to the traditional financial system even though the space is still largely unregulated.
The bank chief added that there are “Financial stability risks are currently relatively limited, but they could grow very quickly if, as I expect, this area continues to develop and expand. How big those risks could grow will depend not a little on the nature and the speed of response of regulatory and supervisory authorities. “
Related Reading | Governor of Bank of England Not Yet a Fan of Bitcoin
His comments are similar to those of Bank of England Governor Andrew Bailey. In May, Bailey called crypto dangerous and warned that investors must be prepared to lose all their money due to the lack of internal value of the digital assets.
Answer by Bitcoin Expert
Bitcoin expert Max Keizer has responded to a recent warning from the Bank of England’s deputy governor about cryptocurrencies in a assertion at Express.co.uk.
He said, “Bitcoin is designed to trigger a collapse of the current trust-money banking system. This is a mathematically guaranteed result.”
BTC trading at over $60.8K | Source: BTCUSD on TradingView.com
Keizer implies that the BoE is sad because Bitcoin has killed central banks. “Bitcoin has killed central banks. The Bank of England is in the second stage of the five stages of grief, the anger phase. “
He further says that the Bank of England will eventually consider adopting Bitcoin.
“The negotiation phase will be their central bank digital currency stage and when that fails comes a depression as the price exceeds £ 363,000 ($ 500,000) and then acceptance with the Bank of England rushing to buy Bitcoin before it exceeds £ 727,000 ($ 1 million) for currency, ”Keizer says.
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