Cryptocurrencies continue to worry supporters of traditional finance. But as contradictory views accumulate, a US Central Bank investigation creates surprise and reframes things. Cryptocurrencies are no longer in the top ten potential financial risks!
Cryptocurrencies excluded from major financial risks
The battle between crypto technology and traditional finance has been raging since the advent of cryptocurrencies. If up to now the institutions have always sided with the banks, things have changed rapidly. Although proponents of traditional finance continue to ignore financial risks in the ecosystem, a Federal Reserve Bank investigation sheds light on some details.
Headquartered in New York, it is one of 12 banks of federal reserves In the USA. This investigation reveals that in terms of risks, eleven factors will overtake cryptocurrencies in 2022. He cites rising energy costs, COVID-19, geopolitical tensions and many others, among others. According to the US Central Bank report, these concerns are often at the center of debates about the US economy.
hence, the cryptocurrencies ranked eleventh out of fourteen reasons for potential financial risks. Despite this year’s bear market, the data is positive and shows the enthusiasm of cryptocurrency entrepreneurs to raise awareness. Remember that the main digital asset, the bitcoin (BTC) and Ethereum (ET) have lost more than 60% of their value compared to the peak in November 2021.
Still, the growth rate is staggering. Crypto assets have grown widely in recent years. The IMF estimates the market value of digital assets to be $ 2.5 trillion. This somehow reveals the substantial economic value of underlying technological advances such as the blockchain.
While cryptocurrencies have the potential to revolutionize today’s financial system, regulators are excited about the risks they present. Despite a positive poll, the US central bank maintains its negative view of the ecosystem. The two main concerns remain customer protection and the impact of these activities on financial stability.
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The world is changing and adaptation is the best weapon to survive in this undulating universe. As the crypto community manager at the base, I am interested in anything directly or indirectly related to the blockchain and its derivatives. To share my experience and introduce a field that fascinates me, nothing better than to write informative articles and relax at the same time.