Bank of England (BoE) deputy governor Jon Cunliffe believes that institutional investors will emerge from crypto’s present crisis with the commercial might of Amazon and eBay at their disposal.
Cunliffe compared the current crypto winter to the dotcom catastrophe of the 1990s, which saw several e-commerce platforms including Global Crossing, British business Boo.com, and American online shop Webvan, among others, lose their stock values.
Amazon (AMZN), IBM (IBM), and eBay (EBAY) are just a few of the companies that made it through the dotcom bust and are now emerging as major players in their respective areas. In the long run, Cunliffe expects the same outcome for investors who weather the crypto-winter.
Further, the public servant, who is 69 years old, equated internet technology to the current notion of cryptocurrency. Cryptocurrency technology and finance will continue beyond this weak market because it has the potential for tremendous efficiency and changes in market structure, like the dot-com boom.
After mentioning the Bank of England’s interest in CBDCs and stablecoins in April last year, Cunliffe presented an update on the work the bank has made in exploring these concepts.
A CBDC or a virtual currency that might be used in stablecoins created by private enterprises, he says, is the preferred option for the country’s financial industry, although he adds that more research is being conducted.
You may have heard about Tether recently launching a stablecoin based on the British Pound Sterling known as GBPT, which is expected to become live in early July. Tether said that the UK government’s support for crypto was a crucial factor in the decision to launch the program.
Two months ago, the British government announced ambitions to turn the nation into a worldwide hub of crypto technology. Rishi Sunak, chancellor of the Exchequer, has said that stablecoins would be integrated into the country’s financial system as part of these ambitions.