[2019-08-7] ECB: Understanding crypto-assets, its risks and measurement issues

[layer1gfx]

Understanding the crypto-asset phenomenon, its risks and measurement issues

Prepared by Maria Teresa Chimienti, Urszula Kochanska and Andrea Pinna

Published as part of the ECB Economic Bulletin, Issue 5/2019

Full Article here: https://www.ecb.europa.eu//pub/economic-bulletin/articles/2019/html/ecb.ebart201905_03~c83aeaa44c.en.html

[buwaytress]

Is it just me or did ECB practically say that they relied on guys like CMC for their data, but admit also that these are all unreliable... so the report's based on data they believe is uncertain in quality? Other than that, actually quite useful for newcomers in finance and banking.

But here the definition for crypto-assets: "a new type of asset recorded in digital form and enabled by the use of cryptography that is not and does not represent a financial claim on, or a liability of, any identifiable entity."

P.S. Should move this to... I don't know. There should be a new section for these kinds of reports... they're not exactly news but they're very useful to plot the thinking of different jurisdictions, national and regional. What do you think guys?

[Swordsoffreedom]

P.S. Should move this to... I don't know. There should be a new section for these kinds of reports... they're not exactly news but they're very useful to plot the thinking of different jurisdictions, national and regional. What do you think guys?

Probably the Legal board is more appropriate.

[layer1gfx]

feel free to move it to another board if "Press" is not 100% correct. cheers

[hugeblack]

"a new type of asset recorded in digital form and enabled by the use of cryptography that is not and does not represent a financial claim on, or a liability of, any identifiable entity."

Even the G20 summit and other economic forums do not recognize cryptocurrencies as money, but merely digital assets.
It is generally good to have official references to define this type of investment. Even if there is some misinformation, it is better than scammers trying to trick newcomers in the field.

Same here

Custodian wallet providers allow the storage of cryptographic keys that are used to sign crypto-asset transactions.

[Slow death]

For this reason, in the case of assets in digital form, a trusted central party is usually tasked with controlling the number of units (notary function) and is responsible for keeping track of who owns what (bookkeeping function).

to my knowledge bitcoin doesn't have this problem so they don't need to worry

Accordingly, the analysis concludes that the ECB should continue monitoring crypto-assets, raise awareness of their risks and develop preparedness for any future adverse scenario. This section aims to: i) provide an overview of risks stemming from crypto-assets, and ii) identify the main connections that may facilitate the transmission of these risks to the financial system and the economy, with a view to informing and calibrating monitoring efforts.

were expected the they say that

i) Individuals and financial institutions, including credit institutions/investment firms, payment institutions and e-money institutions, are not prohibited by EU law from holding or investing in crypto-assets.

But banks and governments keep making nasty comments about crypto that makes many people afraid to use cryptos, it would be great if this information was widely disseminated.