The Bank of England’s Deputy governor Jon Cunliffe has said that the survivors of the cryptocurrency market crash will rise to become the tech companies of the future.
The Bank compared the current cryptocurrency market rout with the burst of the dot.com bubble, which led to the rise of companies like Amazon and eBay afterwards.
Cunliffe was speaking at the Point Zero Forum in Zurich, citing the $5 trillion lost during the dot.com boom. He notes that the technology companies were resilient and became dominant players later.
The central baker maintains that the blockchain technology has huge applications and potential in the financial sector despite the recent volatility. He adds that cryptocurrency assets will keep the momentum despite what is happening.
Cunliffe remarked last year that the rapid growth in cryptocurrencies would threaten the established financial system, citing major digital assets, including bitcoin, as going mainstream.
Source: Finbold