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Former Bank of England analyst: "Financial instability if alien life is disclosed… Bitcoin could come to the fore"

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Minseung Kang
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Summary

  • Helen McCo said that if the existence of alien life is disclosed, a collapse of trust in banks, financial-market turmoil, and greater difficulty in valuing asset prices could intensify.
  • McCo said that in a phase of heightened uncertainty, funds would flow into traditional safe-haven assets such as gold and government bonds, but that expectations of an expanded precious-metals supply could shake gold’s status.
  • She said that if confidence in traditional government and monetary systems weakens, virtual assets (cryptocurrencies) such as Bitcoin (BTC) could come to the fore as alternative assets.
Photo=TYeu/Shutterstock
Photo=TYeu/Shutterstock

A claim has been raised that the UK central bank should prepare for a potential financial crisis that could be triggered by the disclosure of the existence of alien life. The concern is that if the US government officially confirms the existence of alien life, it could deliver a severe shock across financial markets.

According to The Independent on the 19th, Helen McCo, who previously worked at the Bank of England as a senior analyst in financial security, sent a letter to the central bank governor arguing that it is necessary to develop crisis-response scenarios for a disclosure of alien life. She worked at the central bank for the past 10 years.

McCo noted that the US government has been releasing information in stages related to Unidentified Anomalous Phenomena (UAP), and pointed out that "if the existence of a technologically advanced non-human intelligence is confirmed, it could lead to acknowledging the reality of an entity more powerful than any government." She warned that such a declaration could result in a collapse of trust in banks and turmoil in financial markets.

She explained that disclosure of alien life could cause an "ontological shock," triggering extreme reactions in investor sentiment. As a result, valuing asset prices in conventional ways could become more difficult, and excessive volatility or a simultaneous erosion of confidence could emerge.

A flight to safe-haven assets was also anticipated. McCo said that if uncertainty increases, funds could flock to traditional safe havens such as gold or government bonds. However, she added that if expectations form that new space technologies could expand the supply of precious metals, it cannot be ruled out that the safe-haven status of assets like gold itself could be undermined.

Meanwhile, the possibility that virtual assets (cryptocurrencies) could emerge as alternative assets under such a scenario was also mentioned. If confidence in traditional government and monetary systems weakens, funds could shift to cryptocurrencies such as Bitcoin (BTC), which have the characteristics of non-sovereign assets. This, however, is presented as one possible market reaction that could appear in an environment of extreme uncertainty.

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Minseung Kang

minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
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