Bitcoins not big enough to threaten global economy, investors need to do their homework, says Bank of England dy gov

The cryptocurrency has climbed 10-fold so far this year, the largest gain of all asset classes and prompting sceptics to warn it is a classic speculative bubble.

Reuters November 30, 2017 08:07:23 IST
Bitcoins not big enough to threaten global economy, investors need to do their homework, says Bank of England dy gov

LONDON (Reuters) - Bitcoin is not at a size where it would pose a risk to the global economy, Bank of England Deputy Governor Jon Cunliffe said on Wednesday, as the virtual currency soared to a record high above $10,000 on major exchange.

The cryptocurrency has climbed 10-fold so far this year, the largest gain of all asset classes and prompting skeptics to warn it is a classic speculative bubble.

“I would just say investors kind of need to do their homework,” Cunliffe told BBC Radio.

Bitcoins not big enough to threaten global economy investors need to do their homework says Bank of England dy gov

Representational image: AFP

He said he did not think British households as a whole were going on a “debt-fuelled binge” but added that fast rates of consumer credit growth needed to be watched.

Cunliffe was in the minority of officials to vote against a rise in interest rates that took place earlier this month.

Asked why in a separate BBC radio interview, Cunliffe said that although he agreed with his colleagues that Britain’s potential rate of economic growth had slowed since the financial crisis, he wanted to see more sign of inflation pressure.

“My view was given the disappointments we’ve had about pay increases and domestic cost pressures over recent years, we should wait to see those before raising rates.”

Updated Date:

also read

Cryptos can lead to dollarisation of economy: RBI officials to par panel
Business

Cryptos can lead to dollarisation of economy: RBI officials to par panel

There are an estimated 15 million to 20 million crypto investors in India, with total crypto holdings of around USD 5.34 billion

Bitcoin plunges below $30,000, lowest since July 2021
World

Bitcoin plunges below $30,000, lowest since July 2021

The world's largest digital token fell as much as 3.1 per cent to $29,992 in Asian trading. Ether fell as much as 3.7 per cent, while Solana dropped 8.2 per cent and Avalanche dipped 10.4 per cent