He said: “The underlying issue behind crypto volatility, is not celebrity entrepreneurs flip-flopping between whether crypto is good or bad, or even comments from regulators; it’s poor liquidity.
“The lack of market infrastructure and settlement processes, and the risk generated from the need to pre-fund positions, mean there isn’t a strong institutional market.
“The only way banks will enter the market at scale, bringing a stabilising influence on the volatility in the process, will be if crypto infrastructure is brought up to scratch.”
Warnings have now emerged that troubles experienced by cryptocurrencies could soon seep into general financial markets.
