© Reuters
Investing.com – Most global regulators have already factored in the need to regulate the cryptocurrency market. After the shock wave caused by the collapse of last May, which added urgency to this issue, the recent collapse of FTX has made regulation a top priority.
In this context, the Deputy Governor of the Bank of England, Jon Cunliffe, spoke out not only in favor of regulation, but also of a digital form of the English pound:
“Over the past few days, I’ve heard some statements that tend to say that the collapse of FTX shows that we need to move forward and issue a digital book – and that FTX is proof that we shouldn’t.
FTX is the symbol of this new technology and it has been shown that financial services and the form of money are undergoing a transformation.
But past events have also proven the importance for the central bank to address the corporate structure, governance, accountability and transparency requirements that are necessary for this part of the market.
The importance of cash is diminishing as the digitalization of daily life intensifies.
Our approach as regulators should be open – meaning we must be prepared to consider whether and, if so, how the necessary level of security, equivalent to that of conventional finance, can be achieved. But we should also make it clear that where this is not possible, we are not prepared to allow innovation at the cost of higher risk.”
By Marco Oehrl