Crypto Collapse? Taiwan Official Warns Government To Prepare
While many in cryptocurrency for a while feel that the blockchain is here to stay, at least one Taiwan government official believes the recent meteoric rise combined with the sharp downturn in prices is a sign of an impending collapse.
Coindesk reports that Shih Jun-ji, vice president of Taiwan’s executive branch of government, warned the government to prepare policies now in the event that the digital currency collapses completely.
Shih’s concern is that a collapse could lead to financial instability for Taiwan, and he wants to ensure that the government remains stable in case the entire marketplace crashes.
The reason for such concern is that when Bitcoin traded around $10,000 its market capitalization equaled $170 billion which is two times Taiwan’s budget and nearly all the total assets of all the banks in Taiwan combined.
While nobody knows for sure if crypto is in a bubble and if or when that bubble will pop, the currencies are incredibly volatile, and at least one government official wants Taiwan to prepare in advance should the worst occur.
Other countries are also looking at possible policies in the event of a complete bust.