Bank of England Deputy Governor Jon Cunliffe said that companies that have managed to survive the collapse in the crypto market can be technology companies that are the future of Amazon and eBay.

Cunliffe likened the crash that wiped out more than $1 trillion in the value of Bitcoin and other cryptocurrencies this year to the dotcom crash at the turn of the millennium. Cunliffe said at the Point Zero Forum in Zurich on Wednesday.

   "The collapse in the crypto market is similar to the dotcom collapse where $5 trillion was wiped out. Many companies from that era were wiped out, but the technology didn't go anywhere. It came back 10 years later, and survivors like Amazon and eBay emerged as the dominant players in the market."

Bank of England

He emphasized that while the market is currently rocking, crypto technology has great applications and potential in the financial industry.

   “I think crypto technology and finance will continue no matter what happens to crypto assets in the next few months. Cryptos have great potential to change the structure of the current financial system.”

In November last year, Bank of England Governor Bailey said that El Salvador's adoption of BTC as a currency was worrying because consumers could be hurt by the extreme volatility of cryptocurrencies. In June last year, the Bank of England again made a statement about stablecoins and emphasized that stablecoins should be subject to banking laws.

The Bank of England, like many other countries, is making plans to issue its own digital currency (CBDC).

In his statement on this subject, Cunliffe gave an example of stablecoins integrated into supply chain and logistics systems to maximize efficiency. “We haven't yet been able to issue a digital currency that can do all these transactions,” he said.