íàçâàíèå

BIS Backtracks in New Report: Cryptocurrencies ‘Do Not Pose a Global Financial Stability Risk’

BIS Backtracks in New Report: Cryptocurrencies ‘Do Not Pose a Global Financial Stability Risk’

The Bank of International Settlements (BIS) has issued a new report, outlining that cryptocurrencies, at the given moment, do not pose a global financial stability risk, directly contradicting previous statements made earlier this year by this ‘central bank of central banks.’


Headlines Impact Price

According to the newest study on cryptocurrencies released by BIS, cryptocurrencies valuations are broadly impacted by news regarding national regulations, despite attempting to operate out of their reach.


Purportedly, news which covers legislation are associated with market gains. The report notes:

News pointing to the establishment of specific legal frameworks tailored to cryptocurrencies and initial coin offerings coincides with strong market gains.

One of the conclusions of the report, though, is seemingly questionable at best.

“These results suggest that cryptocurrency markets rely on regulated financial institutions to operate and that these markets are segmented across jurisdictions, bringing cryptocurrencies within reach of national regulation,” the document states.

While its natural that national regulations and announcements for the establishment of legislative frameworks would impact cryptocurrencies prices, it does seem a bit lighthearted to conclude that this means cryptocurrencies rely on regulated financial institutions.

Nevertheless, BIS urges regulators to keep a close eye on this emerging industry while acknowledging that its currently not a risk to the global financial system. It reads:

While cryptoassets thus do not, at this point, pose a global financial stability risk, it is important to remain vigilant, monitor developments and respond to potential threats.


So Not Really an ‘Environmental Disaster’

What’s noteworthy, is that this research by BIS contradicts the organizations’ own previous statements. The head of the bank, Agustin Carstens,called Bitcoin a combination of a bubble, a Ponzi scheme, and an environmental disaster on numerous occasions this year.


In March, BIS issued another report on the matter of Central Bank Digital Currencies (CBDCs). That one, though, voiced serious concerns on behalf of the bank, outlining that they would raise fundamental issues that go far beyond payment systems and monetary policy transmission and implementation.

Speaking on the matter was Jacqueline Loh, the chair of BIS markets committee, who said:

Any step towards a possible launch of a CBDC should be subject to careful and thorough consideration.

Does Bitcoin pose a threat to BIS and the incumbent banking system? Dont hesitate to let us know in the comments below!

Images courtesy of Shutterstock, Bitcoinist archives

The post BIS Backtracks in New Report: Cryptocurrencies ‘Do Not Pose a Global Financial Stability Risk’ appeared first on Bitcoinist.com.

24.09.2018 / 12:10 22
Global Financial Watchdog May Restrict Bank Exposure to Crypto Global Financial Watchdog May Restrict
The Financial Securities Board (FSB) has released its report covering crypto assets for the G20 and is considering lowering the exposure of banks to
Cryptocurrencies Pose No Threat to Global Finance but Require Vigilant Monitoring, Says FSB Cryptocurrencies Pose No Threat to
In a press release issued on July 16 via its website, the Financial Stability Board (FSB) announced that cryptocurrencies do not pose a threat to the
Financial Stability Board of Chile Says Cryptocurrencies Are No Threat Financial Stability Board of Chile Says
The Financial Stability Board (CEF) of Chile, an association that is coordinated by the Ministry of Finance and was created in 2011 to ensure the
China May Follow Global Cryptocurrency Regulations, Central Bank Report Suggests China May Follow Global Cryptocurrency
China’s central bank states that the country is willing to support a global regulatory framework for cryptocurrency established by G20. China’s
Cryptos Don’t Pose Risks to Global Financial Stability: FSB’s Carney Tells G20 Cryptos Don’t Pose Risks to Global
The Financial Stability Board (FSB), an international body that monitors the global financial system to promote stability and coordinates financial
Carney On Eve of G20: Cryptos Don't Pose Risks to Financial Stability Carney On Eve of G20: Cryptos Don't
An international group of central bank regulators and government ministers said Sunday that cryptocurrencies don't pose a risk to global financial
Comments (0)
Add a comment
Comment on