BoE Deputy Governor Predicts End to BTC Adoption2 min read
According to a Bank of England official, the BTC bear market was yet to last a long time. According to Jon, deputy governor of Financial Stability at the British institution, the current moment will not contribute to greater adoption of cryptocurrencies.
Instead, for him, a “rejection” of this ecosystem may arise. As Cunliffe pointed out, BTC could have the same end as the VCR. The technology had its hype but then died.
“History has examples of technologies that were shelved or rejected due to dramatic early failures,” he said.
The banker believes that, in the end, successive bear markets will not help the adoption of BTC. Furthermore, the fiat system representative pointed out that the rejection of BTC is also expected to increase with regulation.
“Innovation and regulation are, in the end, friends and not enemies,” said Cunliffe. “It is only within this framework that BTC can truly flourish and secure the benefits of technological change.”
BTC Bear Market
According to Cunliffe, there is no telling how successful and disruptive these technologies will be in the finance industry.
Despite the banker’s warnings, the bear market doesn’t seem to have any big effects in terms of adoption. After all, there is data that confirms that cryptocurrencies continue to be taken into account by both new and old users.
One example is BTC’s Lightning Network (LN), whose adoption has grown considerably since last year. In fact, the number of transactions, which gives an idea of the size of adoption, increased by 400% in a matter of a year.
But Conliffe pondered that the technologies underlying cryptocurrencies will continue to exist. He believes that the “derivatives” of digital assets will continue to develop over time, “both in their own world and in the traditional financial system, where they will have an even greater presence”.
Finally, he said that, with or without BTC, the new digital economy is a path of no return.