TERRA USD AND TERRA LUNA COLLAPSE MADE A PLATFORM FOR CENTRAL BANK TO DELIVER WARNING: ENGLAND
This week, Bank of England Governor Bailey spoke on crypto. Last week on May 13, the crypto market experienced its first major collapse of 'Lehmanesque'.
Stablecoin TerraUSD (UST) lost its peg in the dollar to the lowest price of $ 0.04, causing Terra LUNA to disappear.
The fall of Terra led to widespread crypto sales, moving $ 472 billion from the crypto market and the bitcoin (BTC) slide to May 12 below $ 26,591.
After the market collapse, central banks seized the opportunity to crypto-bash.
Governor of the Bank of England Bailey Goes Anti-Crypto, also
On Monday, former government adviser Jimmy McLoughlin interviewed Bank of England Governor Bailey about Jimmy's Future Jobs. The 49-minute podcast included questions about Russian sanctions, the economy, and secret money.
Bailey said products like bitcoin are not "effective payment methods."
Governor Bailey also took the opportunity to send a warning to cryptocurrencies, saying they "have no internal value" while noting that they have "foreign value."
The BoE governor also described the value of digital assets as "people collecting all kinds of things."
While not ideal for cryptocurrencies, Bailey acknowledged the benefits of basic technology that supports the conversion of digital currencies.
Bailey's comments followed an April interview in which the Governor called cryptocurrencies "New Front Line" of criminal scams.
The anti-crypto comments followed ECB President Lagarde, who spoke on Sunday, calling cryptos as nothing.
The Governor of the Bank of England Bailey and the remarks of ECB President Lagarde are coming at a critical time.
On the one hand, governments are eager to innovate while, on the other hand, legislators are looking to introduce laws that could hamper renaming and force the development of blockchain technologies overseas.
Central Banks, Banks, and Companies Are Different with Cryptocurrencies
While major banks continue to issue warnings, financial institutions have taken a different approach to digital assets.
In April, CNBC reported on teams building financial institutions focusing exclusively on cryptos and blockchain technologies. Banks include American giants Goldman Sachs, JPMorgan Chase, and Morgan Stanley. European banks, such as Barclays, Credit Suisse, Deutsche Bank, and UBS are also in expansion mode.
The need for banks to jump on the bandwagon is not surprising. The standard availability and demand for crypto-related products has increased dramatically.
In recent weeks, a number of luxury fashion companies have announced plans to accept digital payments in US stores or online customers in the US.
While regulators look to reduce cryptos, the US also saw the emergence of crypto-collateralized loans, including crypto-backed mortgages.
Both Bailey and Lagarde's comments could halt the renaming in the technical area. As some authorities, including Dubai, see, all or nothing, which means governments may not be able to choose whether to blockchain or not in crypto.