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One of the directors of the Bank of England admitted that the regulator is not able to independently collect data on the cryptocurrency activities of companies.
Sarah Breeden, director of financial strategy and risk at the Bank of England, said that the actions of banks in organizing services for the trading and storage of cryptocurrencies are forcing regulators to develop rules to protect the financial system.
The UK cannot organize the collection of the necessary data alone, she said. The Bank of England will need to cooperate on this issue with the G20 Financial Stability Council, which provides advice on the stability of the global financial system.
She explained that the Bank of England is facing difficulties in finding the necessary information about the cryptocurrency activities of institutional investors and plans to accelerate international negotiations to establish a regulatory regime for cryptocurrencies.
“It is impossible to get data on what large companies own, for us this is a problem. This is something the UK cannot solve on its own. ”
The Bank of England has repeatedly stated that cryptocurrency holdings do not pose a threat to the UK financial system. However, he expressed concern about their growth rates. In the future, they may become a threat as they increasingly integrate into the traditional financial system. In December, the Bank of England’s Financial Policy Committee (FPC) warned that the trend of merging the fast-growing cryptocurrency market with the mainstream market carries serious risks.
At the same time, the Bank of England believes that the digital pound could become the future of the country’s financial system. Bank of England Governor Andrew Bailey and Deputy Governor Jon Cunliffe said last month that in the long term, about 20% of the country’s payments could be made using the digital pound. Recently, Thomas Belsham, a media relations officer at the Bank of England, published a report on the “uselessness” of bitcoin.
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