Cody McGrath 
Deputy Governor of the BOE expects crypto technology and finance to continue with huge efficiencies with survivors becoming technology giants.
Many experts have highlighted a number of parallels that can be noticed in today’s crypto market by looking back 20 years and reviewing the dot-com bubble.
Jon Cunliffe, deputy governor of the Bank of England, is the most recent figure to compare the current cryptocurrency crisis to the dot-com boom.
View from BOE on Crypto Crash
In the upcoming months, Cunliffe predicted that cryptographic technology and finance will continue to exist. The executive emphasized that cryptocurrency and its underlying technology have substantial applications and promise inside the financial industry despite the ongoing declines.
The Deputy Governor stated at the Point Zero Forum in Zurich,
“The analogy for me is the dot-com boom when $5 trillion was wiped off values. A lot of companies went, but the technology didn’t go away. It came back 10 years later, and those that survived — the Amazons and the eBays — turned out to be the dominant players.
Whatever happens over the next few months to crypto-assets, I expect crypto technology and finance to continue. It has the possibility of huge efficiencies and changes in market structure.”
He added that cryptocurrency market participants emerging from the current crisis might develop into the technology giants of the future, competing with established behemoths like Amazon and eBay.
Focus on CBDC and Stablecoin Regulation
As the cryptocurrency bull run came to an end, there were several layoffs and a resurgence of scammers. Along with cryptocurrencies, the stablecoin market suffered greatly. Many regulators were outraged at TerraUSD’s collapse. One critic of stablecoins, The Bank of England, asserted that they are unstable soon after UST’s demise.
Instead, it is creating a digital currency for retail central banks, with a consultation document due by the end of the year. The BOE is considering whether to establish a totally autonomous CBDC with an “on- or off-ramp to fiat” currency or merely “something that is flexible enough” to be utilized in private stablecoins.
However, the bone of disagreement for BOE is whether it is preferable to have private stablecoins that are more optimized in specific areas and link back to a central bank ledger in some way, or whether the central bank should serve as the base.
Enabling a “completely disintegrated settlement” will put authorities in a difficult situation because doing so would require controlling the AI code that powers cryptography. For the regulatory system to overcome this in the foreseeable future, according to Cunliffe, would be very difficult.