Reports on Cryptocurrency Issued by the Federal Reserve and the European Central Bank

25 May 2022

Another round of cryptocurrency news is emerging while the Davos summit in 2022 proceeds. 

Federal Reserve and European Central Bank headlines dominated the news this week.

The ECB's latest risk assessment of the crypto market focuses on most of the discussion. 

The ECB's research focuses on the existing hazards of crypto investment and specifically examines them. 

Risks include, but are not limited to, rising volatility and a deteriorating level of market integrity. 

Additionally, the research points out a lack of information and conflicts in regulation. 

The European Central Bank (ECB) anticipates minimal risk softening until there is a consensus on risk reduction or more information on the market.

Following Christine Lagarde's interview in which she expressed her disapproval of cryptocurrencies, the ECB released a statement criticizing the technology in question. 

"It is founded on nothing; there are no underlying assets to function as a safety anchor," Lagarde said of the business.

In the United States, the Federal Reserve recently disclosed the findings of a study of 11,000 Americans on their attitudes toward cryptocurrencies. 

This study provides a fascinating look at the demographics of investors. 

Data reveals that "unbanked Americans" are purchasing more crypto, showing that the sector benefits the wealthy overwhelmingly.

"13% of Americans using crypto for payments do not have bank accounts." according to the Fed poll. 

In addition to this, the poll found that the rich are more inclined to invest in cryptocurrencies. 

The 11 percent of crypto investors had a higher net worth than the 2% of crypto buyers and sellers combined.

These tales contribute to the continuing debate about worldwide regulation of the crypto sector. 

G7 leaders urged the Financial Stability Board (FSB) to go forward with crypto legislation last week.

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