A former Bank of England senior analyst has urged Governor Andrew Bailey to develop contingency plans for potential financial market turmoil that could follow official confirmation of extraterrestrial life, warning that such an announcement might trigger asset repricing, a rush toward safe havens including Bitcoin, and possible collapse of public confidence in government-backed currencies.
What Happened: Ex-Central Bank Analyst Warns of Alien Disclosure Risk
Helen McCaw, who previously worked in financial security at the Bank of England, sent a letter to Bailey outlining scenarios that could unfold if alien life were confirmed.
She warned of "extreme price volatility in financial markets due to catastrophising or euphoria, and a collapse in confidence if market participants feel uncertain on how to price assets using any of the familiar methods."
McCaw suggested investors could flee to hard assets such as gold, precious metals, and certain government bonds.
However, she noted that if any disclosure includes advanced space technology, gold and other precious metals might lose their scarcity appeal due to expectations of increased availability from extraterrestrial sources.
Crypto assets could benefit from such turmoil, she argued. "There might be a rush to digital currencies such as bitcoin, which may prove appealing if people question the legitimacy of government and lose trust in government-backed assets," McCaw wrote.
Bank failures and payment system collapse could lead to civil unrest, she added.
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Why It Matters: Trust in Institutions at Stake
The letter arrives as U.S. Congress has held at least two high-profile hearings on unidentified aerial phenomena, though no definitive evidence of extraterrestrial origin has emerged.
McCaw's central concern is that confirmation of alien life could fundamentally shake public trust in governments and traditional financial institutions.
The resulting uncertainty, she argues, could make decentralized assets like Bitcoin suddenly more attractive to investors seeking alternatives outside state control.
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