MetaverseNFTCoins.com
  • NFT News
  • Crypto News
  • Blockchain
  • Regulations
  • Scams
No Result
View All Result
MetaverseNFTCoins.com
No Result
View All Result

Bank For International Settlements Sees Role For Crypto But Pushes For Regulation

December 6, 2021
in Regulations
Reading Time: 6 mins read
A A
Bank For International Settlements Sees Role For Crypto But Pushes For Regulation
ShareShareShareShareShare

A recent report from the Bank for International Settlements (sometimes referred to as the ‘central bank of central banks) has made an unexpected remark that decentralized finance (DeFi) could play a vital role in the traditional financial system. However, the report made clear warnings about potential financial instability.

Per the report, titled DeFi risks and the decentralisation illusion, DeFi could become a much more important and integrated part of the broader financial system than it is today. For this to happen the digital currency would need certain technical and regulatory improvements. 

The bank wrote in it’s report, “History shows that the early development of novel technologies often comes with bubbles and loss of market integrity, even while generating innovations that could potentially be of broader use down the road.”

However, the BIS also stated that if blockchains were to expand their offerings DeFi could play “an important role in the financial system.” The Bank also noted the importance of suitable regulation and large-scale tokenization of traditional assets. 

1

Minimum Deposit

$50

Exclusive Promotion

More than 3,000 assets, including currencies, stocks, cryptocurrencies, ETFs, indices and commodities

Buy crypto, or trade cryptocurrencies via CFDs

CopyPortfolios: Innovative, fully managed investment strategies

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Despite the fairly positive outlook the bank did not fail to acknowledge that DeFi growth “poses financial stability concerns.” Saying, “Since collateral prices fall and margins rise at times of distress, downward price spirals often arise and may spread to the rest of the financial system.”

It added that the reason this has not yet happened is that the DeFi space still is largely self-contained, so further expansion is needed. The report highlighted stablecoins as a major concern, noting that they are “neither central bank money nor commercial bank money.”

The report argued that, “Stablecoins are prone to runs, which would compromise their ability to transfer funds within the DeFi ecosystem.” This has the potential to cause funding shocks for the banks and companies and could have a severe impact on the financial system. 

The BIS suggested that the regulatory framework which already exists in traditional finance should also be applied to the DeFi space, and that tools already used to regulate and supervise banks could be expanded to also cover stablecoin issuers. This would be done to better control the risks that are posed by the mainstream expansion of DeFi. 

Credit: Source link

ShareSendTweetPinShare
Previous Post

Next Big Cryptocurrency Predictions – What Data To Rely On? – Business

Next Post

Crypto prices LIVE – ‘Unvaxxed Sperm’ coin is launched to rival Bitcoin by ‘anti-vax activists’ but crashes in two days

Next Post
Crypto prices LIVE – ‘Unvaxxed Sperm’ coin is launched to rival Bitcoin by ‘anti-vax activists’ but crashes in two days

Crypto prices LIVE – 'Unvaxxed Sperm' coin is launched to rival Bitcoin by 'anti-vax activists' but crashes in two days

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Weekly Updates

why the rich, famous and expert get duped more often than you think

why the rich, famous and experts get duped more often than you think

February 2, 2023
The incredible story of Ruja Ignatova and her 4 billion dollar scam: find out how she was found 5 years later

The incredible story of Ruja Ignatova and her 4 billion dollar scam: find out how she was found 5 years later

January 29, 2023
Logan Paul Faces Class Action Lawsuit Over Alleged CryptoZoo NFT Rug Pull

Logan Paul Faces Class Action Lawsuit Over Alleged CryptoZoo NFT Rug Pull

February 3, 2023
Cosmos (ATOM), Helium (HNT) and Orbeon Protocol (ORBN)

Cosmos (ATOM), Helium (HNT) and Orbeon Protocol (ORBN)

February 2, 2023
Key US data to move the dollar this week and, with it, the cryptocurrency market too.

Key US data to move the dollar this week and, with it, the cryptocurrency market too.

January 31, 2023
MetaverseNFTCoins.com

This is an online news portal that aims to provide the latest NFT news, crypto news, blockchain, regulations, scams, and much more stuff like that around the world. We promise to share only high quality content from the world's best crypto sources. Feel free to get in touch.

What’s New Here!

  • Binance, Kazakhstan agrees on ‘wait-and-see’ approach in regulating DeFi
  • Logan Paul Faces Class Action Lawsuit Over Alleged CryptoZoo NFT Rug Pull
  • Is a Rally on the Way for the Fledgling Altcoin?

Subscribe Now

Loading
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2021 - metaversenftcoins.com - All rights reserved!

No Result
View All Result
  • NFT News
  • Crypto News
  • Blockchain
  • Regulations
  • Scams

© 2021 - metaversenftcoins.com - All rights reserved!

  • bitcoinBitcoin (BTC) $ 23,433.00 1.99%
  • ethereumEthereum (ETH) $ 1,655.96 1.47%
  • tetherTether (USDT) $ 0.998415 0.08%
  • bnbBNB (BNB) $ 331.39 0.46%
  • usd-coinUSD Coin (USDC) $ 0.998477 0%
  • xrpXRP (XRP) $ 0.406935 2.09%
  • binance-usdBinance USD (BUSD) $ 0.998789 0.17%
  • cardanoCardano (ADA) $ 0.404113 0.75%
  • dogecoinDogecoin (DOGE) $ 0.091945 2.01%
  • matic-networkPolygon (MATIC) $ 1.24 0.27%
  • okbOKB (OKB) $ 41.05 0.82%
  • solanaSolana (SOL) $ 24.69 3%
  • polkadotPolkadot (DOT) $ 7.02 3.65%
  • staked-etherLido Staked Ether (STETH) $ 1,653.81 1.29%
  • shiba-inuShiba Inu (SHIB) $ 0.000012 3.04%
  • litecoinLitecoin (LTC) $ 99.61 1.31%
  • avalanche-2Avalanche (AVAX) $ 21.57 2.41%
  • tronTRON (TRX) $ 0.063789 1.93%
  • uniswapUniswap (UNI) $ 7.18 1.77%
  • daiDai (DAI) $ 0.996282 0.41%
  • cosmosCosmos Hub (ATOM) $ 15.11 2.26%
  • wrapped-bitcoinWrapped Bitcoin (WBTC) $ 23,449.00 1.71%
  • chainlinkChainlink (LINK) $ 7.25 1.94%
  • the-open-networkToncoin (TON) $ 2.33 3.78%
  • ethereum-classicEthereum Classic (ETC) $ 23.20 0.86%
  • leo-tokenLEO Token (LEO) $ 3.37 0.26%
  • moneroMonero (XMR) $ 172.48 3.29%
  • aptosAptos (APT) $ 17.05 4.97%
  • bitcoin-cashBitcoin Cash (BCH) $ 138.76 1.85%
  • stellarStellar (XLM) $ 0.092759 1.66%
  • apecoinApeCoin (APE) $ 5.95 4.04%
  • filecoinFilecoin (FIL) $ 5.62 1.38%
  • nearNEAR Protocol (NEAR) $ 2.49 2.63%
  • quant-networkQuant (QNT) $ 144.64 3.31%
  • crypto-com-chainCronos (CRO) $ 0.080697 1.66%
  • lido-daoLido DAO (LDO) $ 2.35 3.6%
  • algorandAlgorand (ALGO) $ 0.267659 0.6%
  • hedera-hashgraphHedera (HBAR) $ 0.072046 2.87%
  • vechainVeChain (VET) $ 0.024692 0.94%
  • fantomFantom (FTM) $ 0.645752 0.53%
  • internet-computerInternet Computer (ICP) $ 5.82 3.8%
  • decentralandDecentraland (MANA) $ 0.782959 2.27%
  • aaveAave (AAVE) $ 91.85 0.56%
  • axie-infinityAxie Infinity (AXS) $ 11.38 3.34%
  • the-sandboxThe Sandbox (SAND) $ 0.764048 1.17%
  • flowFlow (FLOW) $ 1.17 1.23%
  • eosEOS (EOS) $ 1.09 1.48%
  • terra-lunaTerra Luna Classic (LUNC) $ 0.000194 11.43%
  • elrond-erd-2MultiversX (EGLD) $ 45.67 2.14%
  • theta-tokenTheta Network (THETA) $ 1.12 0.93%