The reason a banker advocates for "immediate" regulation of bitcoin

The English banker claimed that rules encourage innovation.

If cryptocurrency users are not regulated, Jon Cunliffe warns that there may be "systemic ramifications."

The reason a banker advocates for "immediate" regulation of bitcoin

On Wednesday, a top official from the Central Bank of England urged countries where bitcoin (BTC) and other cryptocurrencies are legal tender to implement current legislation to the growing industry. This banker believes that it must be done before there are alleged "systemic ramifications" between the users and creditors of these assets.

The Bank of England's deputy governor for financial stability, Jon Cunliffe, said during a lecture in London that the traditional banking system is not in danger due to the magnitude of the cryptocurrency industry. He did acknowledge, though, that "it is an area that has been growing very quickly" and that it has become more integrated with traditional finance.

It is important to make it clear that the "corner" Cunliffe alludes to is actually a global ecosystem that is constantly growing in terms of users and followers. BTC already has a foothold on Wall Street and even in the economies of several nations due to how successful it has been.

He noted that at every meeting of the central banking or international regulatory community, a topic related to financial services, goods, and technologies that have been dubbed "crypto" is always brought up. He has since changed his mind about what he said in July when he claimed that the bear market would hinder ecosystem adoption.

In that regard, it was crucial to address the "well-established concerns" that surround both the global financial integrity and protection of bitcoin users.

And it is now important to consider the systemic effects of using these assets, he said, neglecting to mention the instruments already there in different cryptographic platforms that are specifically designed to address the risks that are also present in the fiat system.

Innovation "is not hampered" by regulation

The banker claims that when implemented appropriately, Bitcoin market laws and regulations help "not to inhibit innovation." This is accomplished by lowering the possibility of "accidents that undermine trust" and by offering "a framework within which to develop."

Cunliffe has previously used bitcoin as a focal point in one of his talks. The English banker even forecasted the alleged end of the adoption of BTC as a result of the bearish market that the ecosystem is going through, as was published by CriptoNoticias in July.

The statistics, however, imply that Cunliffe is mistaken. The adoption of bitcoin and its ecosystem is still growing, as seen by the interest in this asset in nations with high inflation rates, such Mexico, Argentina, and Colombia.

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