In the midst of the correction that the cryptocurrency market is going through, actors of the traditional economic and financial system continue to appear with a discursive line that aims at striking a blow to the price action of cryptocurrencies.
On the international scene today the turn at bat fell to the states that make up the European Union, in this regard according to a report of the body that ensures the financial stability of its member countries, in the manuscript encourages extreme vigilance on cryptocurrencies and curb the leverage of investment funds.
According to the information disclosed, the assessments of the official representatives of the European Union are based on the turbulences that the cryptocurrency market went through last year, which according to them had a limited impact on the financial system, because there are few interconnections with it and with the real economy.
However, European Union spokespersons indicated that the exponential growth of cryptocurrencies and their volatility make it necessary to be extremely vigilant because they can pose systemic risks for investors in the traditional system.
It is worth noting that the authorities of the European Systemic Risk Board, namely the independent body that oversees the financial stability of the economic and financial system of the member countries that make up the European Union.
For the spokespersons of the European Union, the mere fact that some cryptocurrency market platforms are announcing agreements with banks for them to offer digital currencies to their customers, and others are negotiating similar pacts taking advantage of the greater legal certainty of the new MiCA regulation, the brief warns of the dangers of entities tightening ties with the crypto industry.
As such, they consider that these similar risks could materialize, for example, if interconnections with the traditional financial system increase over time, if new interconnections are not quickly identified, or if innovations are also widely adopted in traditional finance.
SOURCES CONSULTED
ReporteLatinoamerica. European authorities warn that growth of cryptoassets may pose "systemic risks". Link
OBSERVATION:
The cover image was designed by the author: @lupafilotaxia, incorporating image: Dailycoin
