Bitcoin expert Max Keiser has said 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 BoE is part of the broader notion that the asset has ‘killed’ central banks, Express.co.uk reports.
He states that BoE is eventually considering adopting Bitcoin, a process that is in various phases, which he likened to the five stages of grief. Keiser believes that the bank is in the anger phase.
“The bargaining phase will be their central bank digital currency stage, and when that fails comes depression as the price tops £363,000 ($500,000) and then acceptance with the Bank of England scrambling to buy Bitcoin before 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 global economy and called for the sector’s regulation.
BoE’s strict approach to Bitcoin
According to Cunliffe, if strict regulations are not imposed on Bitcoin and cryptocurrencies, they can generally trigger a financial meltdown. He cited the volatility of the assets as the main reason for banning Bitcoin. According to Cunliffe:
“But as the financial crisis showed us, you don’t have to account for a large proportion of the financial sector to trigger financial stability problems sub-prime was valued at about $1.2tn in 2008.”
The official maintained that Bitcoin poses stability risks that can grow rapidly, affecting the general financial system. He said that the main concern is that the crypto assets have no intrinsic value and are vulnerable to significant price corrections.
Cunliffe acknowledged that governments must be careful not to overreact or classify new approaches as “dangerous” because they are different.
However, he stated that cryptocurrencies and the technology behind them offer a radical improvement in financial services.