An official from the Bank of England has claimed that the bank wants to impose stricter regulations on the crypto industry on an international scale as more and more banks and institutional investors get involved with the asset class.
Need International Coordination: BoE Official
The official in question is Sarah Breeden, the Executive Director for Financial Stability Strategy and Risk at the Bank of England (BoE). In an interview with The Times, Breeden highlighted the importance of international coordination among central banks, claiming that the UK can not solve the challenges of obtaining data on institutional crypto holdings by itself.
According to Breeden,
“We don’t have a regulatory framework that’s fit for crypto-coins yet, but what we are doing is rolling our sleeves up and getting ready to build it.”
Breeden’s comments about tightening regulations have been aligned with the BoE’s crypto-wary stance and the overall sentiment among the global regulator community. Furthermore, she also brought attention to the contributions of the Financial Stability Board (FSB) in developing a framework for crypto regulations.
BoE Plans Crypto Regulations, CBDC
Multiple other central banks have acknowledged the need for international cooperation among regulators, especially in the financial sector. More specifically, the Bank of England had recently released a financial stability report, highlighting the need for tightening regulations to foster an environment of minimum risk, sustainable innovation, and increased trust and integrity of financial systems. The BoE also plans to regulate the crypto industry within the UK closely. However, the bank has been following the lead of several other financial institutions and central banks worldwide by exploring a central bank digital currency (CBDC) to counter the decline of fiat currency usage.
No Love For Crypto From BoE Leaders
Several other officials in leadership positions in the bank have displayed their concern about the crypto industry and have issued warnings to investors. Most recently, BoE Deputy Governor Sir Job Cunliffe warned about cryptocurrencies losing their value and how that could seriously affect the established financial market. Furthermore, back in November, BoE Governor Andrew Bailey openly criticized El Salvador’s decision of adopting Bitcoin as legal tender, calling it “concerning.” He also claimed that its volatility would eventually cause economic ruin for the country’s citizens, who are BTC users.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.