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BoE's Cunliffe: crypto finance poses risks to stability
Added at 9:43am
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Is ‘crypto’ a financial stability risk? - speech by Jon Cunliffe
I want to talk today about whether the world of ‘crypto finance’ poses risks to financial stability. Cryptoassets have grown by roughly 200% in 2021, from just under $800 billion to $2.3 trillion today. They have grown from just $16 billion 5 years ago. $2.3 trillion of course needs to be seen in the context of the $250 trillion global financial system. But as the financial crisis showed us, you don’t have to account for a large proportion of the financial sector to trigger financial stability problems – sub-prime was valued at around $1.2 trillion in 2008footnote[1]. When something in the financial system is ... (full story)