Big Bankers Say Cryptocurrencies Do Not Threat The Global Financial Stability

[meliodas]

The volatility of the cryptocurrencies in the market is what makes the big bankers to not be threaten. People doesn't want to stick to something that is unstable, majority of the people in this world always prefer a currency that is stable and regulated so they can feel comfortable when using it and they know that there is someone that is leading them which is the government.

Big bankers always have this ideology. People commonly have a thinking, something instable isn't good to be used as same as fiat. Global financial stability is much associated with the fiat as the cryptocurrency contributions were very low. Governments that are with the plans of adoption and development of own cryptocurrency feels this to be too early for the same.

fiats not stable  ?  i think your wrong  . fiats are stable  .  people do also love the idea behind cryptos , the unstability of cryptos rather because this gives them a potential to earn  . crypto do not threaten the financial stability at all because it does not over lap with the fiat .  fiat are still the ones the riegn offline while people only use crypto on the side specifically for online use and for doing business like trading or investing  . bankers infact love crypto's and not hating it .

Yeah in the start banks were afraid of crypto as they used to think that crypto might surpass fiat as it is borderless and anonymous and upto a certain extent they were also right.
So to overcome this they started campaigning against crypto altogether in the shadows and made the reputation of crypto as a payment method used for buying drugs and money laundering. Now crypto market is less than a trillion dollars combined and this is just a small pond as compared to the oceanic fiat currencies.

We cannot deny that the cryptocurrencies are being used to do illegal activities in the black market like buying drugs and so on but even though the government didn't start to spread that, they could still make sure that cryptocurrency cannot surpass the market of fiat currencies because they all know that they have the control in rules and regulation in a certain state or country.

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[supercanada1]

The volatility of the cryptocurrencies in the market is what makes the big bankers to not be threaten. People doesn't want to stick to something that is unstable, majority of the people in this world always prefer a currency that is stable and regulated so they can feel comfortable when using it and they know that there is someone that is leading them which is the government.

Big bankers always have this ideology. People commonly have a thinking, something instable isn't good to be used as same as fiat. Global financial stability is much associated with the fiat as the cryptocurrency contributions were very low. Governments that are with the plans of adoption and development of own cryptocurrency feels this to be too early for the same.

fiats not stable  ?  i think your wrong  . fiats are stable  .  people do also love the idea behind cryptos , the unstability of cryptos rather because this gives them a potential to earn  . crypto do not threaten the financial stability at all because it does not over lap with the fiat .  fiat are still the ones the riegn offline while people only use crypto on the side specifically for online use and for doing business like trading or investing  . bankers infact love crypto's and not hating it .

Yeah in the start banks were afraid of crypto as they used to think that crypto might surpass fiat as it is borderless and anonymous and upto a certain extent they were also right.
So to overcome this they started campaigning against crypto altogether in the shadows and made the reputation of crypto as a payment method used for buying drugs and money laundering. Now crypto market is less than a trillion dollars combined and this is just a small pond as compared to the oceanic fiat currencies.

That is not the real game here, I think. There is a lot more than that. This is for sure that bitcoin and altcoins are going to take over fiat and this won’t take much time now. In the beginnings, bankers were afraid of crypto currencies but just look at the history of ripple and the picture will become clearer. If banks come up with their crypt currencies, they really don't have to feel any more threaten by digital assets. They will simply make a friendship with these coins.

[X-ray]

We cannot deny that the cryptocurrencies are being used to do illegal activities in the black market like buying drugs and so on but even though the government didn't start to spread that, they could still make sure that cryptocurrency cannot surpass the market of fiat currencies because they all know that they have the control in rules and regulation in a certain state or country.

Guess what, the same thing happened to fiat and government just close their eyes regarding this matter and don't have the initative to take action but instead just letting it be because the more fiat used worldwide the more value it has. You can't generalize that cryptocurrency is the currency of criminal just because some people take advantage of it for doing that. it's just some really few group that did such activities and most of them are gradually being caught by the cops anyway.

[Spaffin]

If you study the history of the old world, such as France, then according to the information you can find out that in those days, bankers practically forced the rulers of states to make certain decisions related to government or even the start and end of hostilities with other states.  The rulers of the states at that time were very dependent on bankers because of their debts.  Currently, the situation is completely different and the government controls the banking system.  But if you take the World Bank as an example, then it very often dictates the terms to many states, especially those that receive money tranches.

[bohr]

The volatility of the cryptocurrencies in the market is what makes the big bankers to not be threaten. People doesn't want to stick to something that is unstable, majority of the people in this world always prefer a currency that is stable and regulated so they can feel comfortable when using it and they know that there is someone that is leading them which is the government.

Big bankers always have this ideology. People commonly have a thinking, something instable isn't good to be used as same as fiat. Global financial stability is much associated with the fiat as the cryptocurrency contributions were very low. Governments that are with the plans of adoption and development of own cryptocurrency feels this to be too early for the same.

People have the idea that bitcoin is unstable because they are always looking at its value in fiat, but when you look at bitcoin and you compared to itself you will see that it has a very low inflation each year and with each halving that inflation is going down unlike what is happening with fiat, so bitcoin is really stable in that sense while fiat is the one that is suffering a huge inflation, if at some point bitcoin breaks free from fiat then it could become the most stable currency to ever exist in the world.

[bitbunnny]

Cryptocurrencies by its characteristics and structure can't be threat to financial system. They can't actually be introduced into that system, cryptocurrencies can't replace fiat currencies and in general very small number of overall population is using cryptocurrencies.
But the purpose of cryptocurrencies is not to make financial system unstable or to replace fiat currencies so we need to find the best way how to get the best of both, fiat currencies and cryptocurrencies together.

[Karmakid]

The banks and the governments are connected so even cryptocurrencies will become big in the future, as long as the government will not allow or give permission to cryptocurrency to fully penetrate a certain country then there will be no threat for the financial institutions and financial stability because people will be forced to use fiat currencies and other traditional financial tool because they don't have a choice but to obey to the rules and regulation of the government.

[CaVO32]

Cryptocurrencies by its characteristics and structure can't be threat to financial system. They can't actually be introduced into that system, cryptocurrencies can't replace fiat currencies and in general very small number of overall population is using cryptocurrencies.
But the purpose of cryptocurrencies is not to make financial system unstable or to replace fiat currencies so we need to find the best way how to get the best of both, fiat currencies and cryptocurrencies together.

we are already enjoying the benefits of both system - crypto and banks. if you are a crypto user, i guess you are enjoying the conversion of your crypto to fiat easily at minimal fee and if you send somebody money to another side of the world you can do so with crypto incurring a very small fee.
and in terms of utilizing banks, still the same. because you need them for different purposes. who knows, they are already creating their own digital currencies to be used within their operations?

[HarmonyA]

Big Bankers Say Cryptocurrencies Do Not Pose a Threat to Global Financial Stability

The Financial Stability Board, a global inter-governmental body with over 20 member countries, has ruled that virtual currencies are not a threat to the world economy. The assessment could have an impact on India, whose central bank is part of the board.


FSB Says Cryptocurrencies Won’t Affect Global Financial Stability
While the crypto winter shows signs of dissipating, 2019 may bring good news for the cryptocurrency ecosystem in India. Highly unfavorable regulations imposed by the Reserve Bank of India, the country’s central bank, have forced many companies in the industry to leave or close down.

However, last week’s report from RBI gives new hope to the country’s crypto space, as all signs point to easing its stance on digital assets.

According to Quartz, the Financial Stability Board (FSB) has said that virtual currencies are not a threat to the world economy. The board, established in 2009 in the aftermath of the 2008 global financial crisis, includes finance ministers and central bankers from all of the G20 nations.

The board’s assessment came to light after RBI quoted the agency in a report released last week, Quartz reported. The FSB’s initial assessment indicated that crypto-assets currently do not pose a risk to global financial stability.


India’s Central Bank Could Be Easing Its Stance on Cryptocurrencies
Even though these assessments are not legally binding for any of the FSB’s member countries, they are usually adhered to in order to maintain global standards, said Quartz. With that in mind, the report was well received by the crypto community in India, who see it as a ray of hope for the following year.

India’s central bank has effectively banned cryptocurrencies, forbidding all banks operating in the country from providing services with companies in the industry.

Businesses and traders have been vocal about the need for more regulation in the industry, saying that the lack of transparency when it comes to the legality of the assets opens doors for government abuse.

On December 28, 2018, Pon Radhakrishnan, the minister of state for finance, told the lower house of the parliament that the country still hadn’t set a deadline for any norms regarding the industry.

However, Nischal Shetty, CEO of WazirX, an Indian cryptocurrency exchange, told Quartz that a lack of regulation isn’t always bad news.

    “It probably means that the government of India does not see cryptocurrencies as a matter of immediate concern, or something that needs to be regulated right away. This at least means that fears of a ban are not imminent,” he explained.

Cryptocurrency enthusiasts may want digital currencies to one day replace fiat. Yet, it seems that the G20 is not too concerned. Perhaps this will give crypto more time to flourish under the existing economic framework.


Reference: https://cryptoslate.com/big-bankers-cryptocurrency-not-threat-global-financial-stability/

Is what they call financial stability the privatization of the financial sector? Despite the global financial stability by traditional banking,  it couldn't stop economy recession. Then why wont cryptocurrency if well regulated not engender global financial stability.
The Analysis has proven cryptocurrency to be the liberator of our financial stability. But I don't want fiat to be entirely eliminated due to crypto volatility.

[bohr]

In order for cryptocurrencies to be called a threat to banks or the state financial system as a whole, it would be necessary for the number of crypto users to be comparable with the number of people using banking services. And everyone knows that only a small fraction of people use crypto.

Being financially responsible for many is a difficult task. And because people go to banks, because they take on obligations to keep money and serve you. Cryptocurrencies require a conscious desire to find the best conditions for their assets. Training in cryptocurrencies and investing can be done on the taklimakan platform, receiving instructions from experienced investors and traders. But five, for this, you need a desire not to go with the flow of life working wherever you find a place, but to improve yourself and choose the best that will allow your financial situation to be on top. Considering how small a fraction of people are truly interested in such opportunities, the government may not have to worry for a long time that crypto can somehow harm

If people prefer to use cryptocurrencies instead of traditional banking services, the government should, on the contrary, be pleased that they have such a large number of self-conscious people. Let banks also begin to think about improving the service and how they can master crypto space, because when there are more equal players in the market, business can be done more successfully.

You are thinking this from the perspective of the people but from the perspective of governments and banks if more people begin to use cryptocurrencies then that is a sign that they are leaving behind the system that they had put in place, and there is no business in the world that likes the idea of losing customers to a competitor so I'm completely sure that they're going to do everything to stop that from happening but they do not know how to do that because it is impossible to stop something like bitcoin.

[The Sceptical Chymist]

<snip>

Did you have to quote the entire OP?  Just sayin'.

Never heard of the Financial Stability Board, but their proclamation sounds like they almost approve of cryptocurrencies, which is kind of a good thing.  I also think they're correct, that bitcoin and all the other coins on the market aren't a threat to anything--especially not financial stability.  The only thing that's a threat to that is the bankers themselves and their shady practices, as well as the US printing money like it's going out of style.  That might screw things up for the next few generations, so the millenials' kids and grandkids can thank the Fed for that.

[aamirsuh]

Major market financiers still do not take bitcoin seriously. I'm not surprised. Because the total value of the bitcoin market is still very low. $ 250 billion. Not a very important amount. There is much more money in the world markets.

[Triffin]

nope, this sounds ridiculous. So how do they control a bunch of money manipulation and manipulation organizations here every day? Do they have any evidence to identify users of wallets with money transfer activity? Obviously the answer is no.
trusting cryptocurrencies is a very wrong decision because if they have the capacity, they will soon accept the cryptocurrency market and have participated in it to make a lot of profit. and furthermore, if cryptos were easy to control, Congress in the United States would not have strictly forbidden Libra.

The major reason behind the success of bitcoin and other coins has been their decentralized nature and you want that to disappear. This is the most important thing for investors because now the common people want to get economical freedom. Nobody can control or own bitcoin and decentralized altcoins. Anonymity provided by these coins is more like privacy to holders and they have right to have it.

[mamahdedeh]

nope, this sounds ridiculous. So how do they control a bunch of money manipulation and manipulation organizations here every day? Do they have any evidence to identify users of wallets with money transfer activity? Obviously the answer is no.
trusting cryptocurrencies is a very wrong decision because if they have the capacity, they will soon accept the cryptocurrency market and have participated in it to make a lot of profit. and furthermore, if cryptos were easy to control, Congress in the United States would not have strictly forbidden Libra.

The major reason behind the success of bitcoin and other coins has been their decentralized nature and you want that to disappear. This is the most important thing for investors because now the common people want to get economical freedom. Nobody can control or own bitcoin and decentralized altcoins. Anonymity provided by these coins is more like privacy to holders and they have right to have it.

for the point of view of the government it may still be difficult not to control the decentralized system. there are still many considerations that must be resolved. but the development of the era continues to grow, and every country must follow it, to become a developed country

[Gheka]

Major market financiers still do not take bitcoin seriously. I'm not surprised. Because the total value of the bitcoin market is still very low. $ 250 billion. Not a very important amount. There is much more money in the world markets.

Financialists and major banks do not appreciate bitcoin perhaps a reasonable thing when we stand at many angles, bitcoin is just a place to invest and with the level of risk visible, the number of people investing in bitcoin is only a relatively small amount compared to the world market, even with bitcoin having record price increases like in the past, the capitalization of this market is still not too much, feeling the threat is not existent. And if this threat arises, governments can still sniff it in time and deal with it, banks understand it.

[buwaytress]

Major market financiers still do not take bitcoin seriously. I'm not surprised. Because the total value of the bitcoin market is still very low. $ 250 billion. Not a very important amount. There is much more money in the world markets.

Financialists and major banks do not appreciate bitcoin perhaps a reasonable thing when we stand at many angles, bitcoin is just a place to invest and with the level of risk visible, the number of people investing in bitcoin is only a relatively small amount compared to the world market, even with bitcoin having record price increases like in the past, the capitalization of this market is still not too much, feeling the threat is not existent. And if this threat arises, governments can still sniff it in time and deal with it, banks understand it.

Why should they? They've got a lot riding on the old system. Anything like Bitcoin threatens that system, and therefore, their livelihoods there. Imagine a market like Bitcoin where not everything is centralised. P2P exchanges. Non custodial platforms. Where only a small volume is available on markets they can control and regulate.

How would they be able to move and manipulate at will anymore?

And a system that doesn't like debt and doesn't like creating value out of thin air? Terrible!

[bohr]

Major market financiers still do not take bitcoin seriously. I'm not surprised. Because the total value of the bitcoin market is still very low. $ 250 billion. Not a very important amount. There is much more money in the world markets.

I have the complete opposite reading of the situation, if bitcoin was not a threat as they say then they will not take the time to say that it is not a threat, they are just trying to give the impression that bitcoin is not a problem for them and in a way they are right their biggest problem as of right now comes from their own mismanagement, but once that becomes obvious to the whole world that is when bitcoin is going to really become a threat to them and to what they stand for.

[Brunus]

Perhaps it is true that crypto is not currently a threat to global finance. For the moment. But the day a critical mass of users should be created, then a real revolution will start. But it still seems far away.
For the moment...

[hahay]

I think as long as crypto is not used as the main currency then it will still be fine for global finance, it is different when many countries have made crypto as the currency of their country and then the people switch to crypto, then at least it is a threat also to finally. But no one knows about the future and I think the government will very attention about this so it will keep the balance well maintained.

[kotik085]

Big players know what they’re doing. It seems to me on the contrary that cryptocurrencies threaten the financial structure.