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Bank of England warning on crypto

ended 07. June 2021

3 responses from the Newspage community

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Mark Dyason
Owner at Edinburgh Mortgage Advice
"As an entity in charge of a major fiat currency, it's no surprise the Bank of England is wary of the risks of cryptocurrency. Its job is specifically to maintain monetary and financial stability, which is the polar opposite of what the creators of cryptocurrencies want. "The risks Threadneedle Street want to avoid are the turbulent fluctuations in value that are, for now at least, intrinsic to crypto. However, the benefit is that cryptocurrencies cannot be devalued by QE, therefore protecting the value of what the holder has in real world terms against inflationary pressures created by Governments firing up the printing press every time a problem occurs."
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Aaron Strutt
Product and Communications Director at Trinity Financial
"The vast majority of lenders are not normally keen to provide mortgages to borrowers when their deposits have come from cryptocurrencies. Their compliance departments are so hot on money laundering they are simply not willing to take the risk. "Many of the people who have generated large deposits are particularly annoyed when lenders will not provide them with a mortgage because of the cryptocurrency link. Right now, banks and building societies are being inundated with applications so they can be pickier about who they lend to."
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Imran Hussain
Director at Harmony Financial Services
"From Elon Musk to your friend Bob down the pub, everyone has been on about cryptocurrencies for the past 12 months but, due to a lack of regulation, it's open for manipulation by rogue elements. "The Bank of England warning investors that the most popular cryptocurrency, Bitcoin, has no intrinsic value and the recent dip of 30% also raises understandable concerns for many institutional investors."