The Bank of England Warns Against Risks Associated to Digital Currencies

The Bank of England (BoE), the UK’s central bank, periodically draws attention to the growing popularity of cryptocurrencies.

According to the regulator, it is necessary to establish control over this industry both domestically and globally.

The bank has said that cryptocurrencies pose threats to the stability of global and local financial systems. Per the regulator, the only way to level out such risks is to introduce the strictest possible regulation of the industry, which will increase its transparency.

The central bank has reminded that the capitalization of digital currencies at the end of last year was close to $3 trillion, but in mid-2022, it has fallen to $900 billion. This obvious volatility poses great threats to investors, and the government needs to protect citizens who choose to purchase such instruments.