Bank of England deputy governor believes that crypto will survive this bear market

Jon Cunliffe, the deputy Governor of the Bank of England, is the latest person to compare the dot-com bubble with the ongoing crypto crash.
Jon Cunliffe, the deputy Governor of the Bank of England, is the latest person to compare the dot-com bubble with the ongoing crypto crash.

Jon Cunliffe, the deputy Governor of the Bank of England, is the latest person to compare the dot-com bubble with the ongoing crypto crash.

Cunliffe expects that crypto technology and finance to survive in the coming days. During an interview at the Point Zero Forum in Zurich, he highlighted that digital assets and their underlying technology have significant applications and the potential to grow within the financial sector. He stated:

“The analogy for me is the dot-com boom when $5 trillion was wiped off values. A lot of companies went, but the technology didn’t go away. It came back ten years later, and those that survived — the Amazons and the eBays — turned out to be the dominant players.”

Bank of England deputy governor added that cryptocurrency market players emerging from the current crisis might develop into the technology giants of the future, competing with established behemoths like Amazon and eBay.

As the crypto bull run came to an end, there were several layoffs and a return of scammers. Along with cryptocurrencies, the stablecoin market suffered greatly. Many regulators were outraged at TerraUSD’s collapse. 

Bank of England is creating a retail CBDC

The Bank of England is creating a retail central bank digital currency, with a consultation document due by the end of 2022. The BOE is considering whether to establish a totally autonomous CBDC with an “on- or off-ramp to fiat” currency or merely “something that is flexible enough” to be utilized in private stablecoins.

Notably, as TheCoinRise reported in March, the Bank of England partnered with MIT or Massachusetts Institute of Technology on its CBDC research.

Cunliffe believes that enabling a “fully disintegrated settlement” will put authorities in a difficult situation because doing so would require controlling the AI code that powers cryptography. For the regulatory system to overcome this in the foreseeable future would be very difficult.