Speaking to Sky News, the lieutenant governor was asked about the BoE's stance on cryptocurrencies in the wake of the FTX collapse in the US.
The cryptocurrency exchange filed for bankruptcy on November 11, and its valuation fell from $32 billion to insolvency in a matter of days, causing the cryptocurrency market to lose billions in value amid volatility.
The industry faces a growing to-do list as regulatory equivalence moves further and further
In the interview, Cunliffe said that crypto asset trading had not been large enough to destabilize the financial system, โbut it was beginning to develop links.โ
He added: "I don't know what that would be like. [have] developed, but we had banks and investment funds and others who wanted to invest in it.
Commenting on the BoE's future plans to manage the asset, Cunliffe said: "We should think about regulation before it is integrated into the financial system and before we can have a potential systemic problem."
Cunliffe said that while cryptocurrency trading is "not something I would do," he said that for people wanting to get into that space, there should be "consumer protection and market integrity" similar to that provided for "similar activities." .
The central bank itself has been making some moves in this space, as it is currently looking for a third-party provider to develop a mobile wallet for a central bank digital currency (CBDC).
