Cryptocurrencies have been promoted as a way to reduce financial risks in emerging economies, but a new report from the Bank for International Settlements (BIS) suggests that they may actually be amplifying them. The report, which was compiled by the BIS’s Consultative Group of Directors of Financial Stability, states that cryptocurrencies cannot solve the financial challenges of developing countries, such as high-fee payment transactions and high inflation.The report warns that if cryptocurrencies become more widely adopted by retail investors and if they become more closely linked to the traditional financial system, the risks associated with them will become even more pressing. It suggests that authorities have a range of policy options to address these risks, from outright bans to containment to regulation. However, it cautions that an overly prohibitive approach could have unintended consequences, such as driving activities into the shadows and making it harder to influence responsible actors in the sector.
| Information |
Details |
| Geography |
Global |
| Countries |
🇧🇷 🇨🇦 🇺🇸 |
| Sentiment |
negative |
| Relevance Score |
9 |
| People |
Brazil, Canada, United States, Don, Hodl |
| Currencies |
None |
| Securities |
None |
