Cryptocurrencies only require monitoring – Bank of England

According to the Bank of England, cryptocurrencies are not subject to any additional monitoring, even though they have become more interconnected with large investors.

Market intelligence from the twice-yearly Financial Stability Report (FSR) shows that crypto assets are mainly held by retail investors. According to the report, institutional investors have very limited exposure to crypto-assets at the moment.

Andrew Bailey, Bank of England Governor, stressed that crypto does not have an intrinsic value and warned investors that they could lose all of their money.

From an institutional point of view, the evidence does not point to it being a large part of the picture, but we have to watch it very carefully, as we do because it is a fast-changing landscape.

Inflation in the UK will drive institutional crypto-investment?

According to Jonathan Athow, ONS deputy national statistician Jonathan Athow, inflation rose in four consecutive months and reached its highest level in three years. Before falling below its target, inflation reached 3 percent this year.

Capital Economics’ chief economist in the United Kingdom, Paul Dales, has warned that inflation could rise to 4 percent by the end of this year.

We think this surge in inflation will be temporary, which means the Bank of England won’t tighten policy in response.

This could drive institutional investors to invest in Bitcoin and other high-performing cryptocurrencies.

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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