The European Union: cryptocurrency can bring stability in the traditional financial system
Source:
A formal request for European economic ECON Committee of the European Union published its report on the possible pros and cons of the crypts. As it turned out, the digital currency of Central banks (CBDC) can pave the way to a more stable financial system because of its "subversive" nature. The document also speaks about the advantages of cryptocurrencies to developing countries. While market volatility may lead to unexpected risks. It is reported .
theanalysis of the risks of cryptocurrencies
The Main message of the document – the crypt may lead the global financial system to a more stable state. The release of the CBDC requires improvement of certain mechanisms of the Central banks, so they have the opportunity to revise the main principles of its activities.
However, the cryptocurrency, there are significant risks. Their main drawback is too high volatility. However, it can be handled by entering a new trading pair with Bitcoin. So traders will be more inclined to trade than to simply holding coins in the wallet.
The Number of trading pairs of currencies with Fiat increases. This can result in increased demand for certain coins and, consequently, in reducing the volatility of Bitcoin.
The report also says about the risks of volatility in traditional markets. For example, banks can't just snap their financial instruments to the cryptocurrency, or else it will greatly affect the price movement of Fiat.
On the positive sides mentioned the use of crypts for Venezuela and China. In a second country, cryptocurrencies are used to avoid strict financial control from the state.
In Venezuela the population is suffering from the incapacity of the traditional monetary system. Cryptocurrencies are helping the Venezuelans to make simple payments for food and medicine. The government went even further and even national cryptocurrency Petro. However, the initiative to reinforce the value value of the oil still remains in question.
According to the creators of the document, developers of digital assets need to be more honest and transparent. The crypt is a lack of clarity in Wallpaper. In addition, the market must be carefully ICO .
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