Bitcoin professional Max Keiser has stated that the Bank of England will be scrambling to acquire Bitcoin before the asset trades at $1 million.
Keiser notes that the potential adoption of Bitcoin by the Bank of England (BoE) is a part of the broader notion that the asset has ‘killed’ central banks, Express.co.uk reports.
He states that BoE is ultimately considering adopting Bitcoin, a process that’s in various phases, which he likened to the 5 stages of grief. Keiser believes that the bank is in the anger phase.
“The bargaining section will be their central bank digital currency stage, and when that fails comes depression as the value tops £363,000 ($500,000) and then acceptance with the Bank of England scrambling to buy Bitcoin earlier than it tops £727,000 ($1million) per coin,” said Keiser.
His comments come after Bank of England deputy governor Sir Jon Cunliffe indicated that cryptocurrencies threaten the worldwide economy and called for the sector’s regulation.
BoE’s strict approach to Bitcoin
In accordance with Cunliffe, if strict rules aren’t imposed on Bitcoin and cryptocurrencies, they will typically set off a financial meltdown. He cited the volatility of the assets as the main purpose for banning Bitcoin. According to Cunliffe:
“However because the financial disaster confirmed us, you don’t must account for a large proportion of the financial sector to set off monetary stability issues sub-prime was valued at about $1.2tn in 2008.”
The official maintained that Bitcoin poses stability risks that can develop rapidly, affecting the general monetary system. He stated that the main concern is that the crypto assets don’t have any intrinsic value and are vulnerable to important price corrections.
Cunliffe acknowledged that governments should be careful not to overreact or classify new approaches as “dangerous” because they’re different.
Nonetheless, he said that cryptocurrencies and the technology behind them provide a radical improvement in financial services.
Source: Finbold