Big Bankers Say Cryptocurrencies Do Not Threat The Global Financial Stability

[cybersofts]

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/

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[sunsilk]

They can say whatever they want to say. They may see it as a shrimp for now but they'll act differently when they see its market cap starts to hit $1T or so.

Is this thread should be on Press?

[hatshepsut93]

They can say whatever they want to say. They may see it as a shrimp for now but they'll act differently when they see its market cap starts to hit $1T or so.

Is this thread should be on Press?

Apple had $1T marketcap recently, then it crashed by 40% and guess what, the world didn't end, and even American economy didn't suffer from it. And crypto has low liquidity compared to stocks, so marketcap is even more meaningless in this case.

Crypto will not be able to threaten global economy and banks, because it doesn't have enough users. Bitcoin exists for 10 years and since the beginning people though that mass adoption is coming soon and the revolution will begin, but there's no signs of it coming. It's time to open your eyes and realize that crypto is a niche product that is not suitable for everyone and that majority of the population doesn't care about freedom or privacy.

[NeuroticFish]

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

Bankers started to get more relaxed towards Bitcoin? Very good.

Bitcoin can be a threat to some of the banking operations, but this will only make the smarter banks evolve better. Bitcoin is clearly no threat to the banks, at least not yet and for quite some more time. This is not because banks are good and Bitcoin is bad, it's because of people's and businesses' inertia and because the legislation favors the banks.

And even if the things get to the point Bitcoin will become a real threat to the banking system, the overall financial stability should not get affected.


So I find the title correct and I'm glad to see they also have found this out. It would be beneficial for Bitcoin to get better connected to financial world and to businesses and for this (unfortunately) we need the banks accept us.

[geyayy]

Cryptocurrency is not a threat to an economy nor can be helpful. It is on how people use it because its still a technology. Technology does improve efficiency but it still on the people on how they will use it to improve their lives or to make it beneficial though government plays a big role on these technologies. They can prohibit or accept technology depending on the weight of benefits to disadvantages. Besides, cryptocurrency is now a  well known method of transferring funds, why would a government insist to prohibit it just because of some disadvantages may incur. They should do research carefully.

[bettercrypto]

I don't really understand why some people say that cryptocurrency and blockchain are bringing threat to banking system. We know that cryptocurrency can revolutionize significant financial transactions, but will not fully replace every thing. Thus, banking system and its fiat money reserved will still be used in some transactions. Let blockchain revolutionizes other fields aside from financial field.

[vintages]

They know the truth deep down yet,  they are pretending it isn't there. The truth remains that cryptocurrency particularly Bitcoin, once threaten the gobal financial when the price was skyrocking. They shouldn't just think that because the price dipped so it's over, Bitcoin is just getting started and we know that these 'Big Bankers' are number one secret investors.

[sana54210]

India probably realized that when those companies leave they stop paying taxes as well, you can't pay taxes when you are not open for business. India wanted to regulate it heavily and saw the companies leave and decided to step back on their approach. This will be the stance for many "middle ground" countries in the future as well.

There are countries like Switzerland and Malta and Ukraine that is quite pro-crypto that will get many crypto business starting there and paying taxes there.

There are a lot of countries who still doesn't have a specific crypto law established yet and look at it like an exchange for foreign currency instead (license to buy and sell dollars-euros and so forth applies to being capable of buying/selling crypto in many countries even to this day) and there will be countries like India that will have crypto laws but bend it somehow until finding the right spot.

[Juggy777]

India probably realized that when those companies leave they stop paying taxes as well, you can't pay taxes when you are not open for business. India wanted to regulate it heavily and saw the companies leave and decided to step back on their approach. This will be the stance for many "middle ground" countries in the future as well.

There are countries like Switzerland and Malta and Ukraine that is quite pro-crypto that will get many crypto business starting there and paying taxes there.

There are a lot of countries who still doesn't have a specific crypto law established yet and look at it like an exchange for foreign currency instead (license to buy and sell dollars-euros and so forth applies to being capable of buying/selling crypto in many countries even to this day) and there will be countries like India that will have crypto laws but bend it somehow until finding the right spot.

Hey from what I read India is trying to get laws to regulate cryptos, after terming it illegal now their top Bank says it's not a threat. It's pertinent to note that India has record breaking transactions, and if those were to be taxed it could open a new source of income for the government. Also many states in USA are accepting tax payments in cryptos, and many other countries will follow suit too in accepting cryptos as tax payments.

[Harlot]

India is in a cryptocurrency roller coaster right now where I see ups and downs bust mostly negative things against cryptocurrencies. I don't know if this is really a change of heart but recently I am seeing news that their is a new committee that is ruling in favor of cryptocurrencies and they are pushing the government to draft a legal framework for it. The only thing I am seeing as a hindrance is their own central bank which is the RBI as any committee being push around by the RBI is a useless committee and we should expect no progress in their country.

[ShadowBits]

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/

But for me it will, but I guess big companies on Banks could really find a way to adapt cryptocurrencies also and be one of the companies that would also handle them.

[Sarastiche]

Crypto is not a threat to the global financial market but adding a positive influence to the global world, it has been confirm at several forum the level of employment and value addition CRYPTO has added to the global world, thou it seems as a threat to the banking sector, with synchronisation but sector will be of benefit to each other and the global world at large.

[Ozero]

Of course, if the cryptocurrency will go to the states simultaneously with the national money of these states, it cannot have a noticeable effect on global financial stability. I think that no state will abandon its national money in favor of decentralized cryptocurrency. In addition, cryptocurrency does not yet have significant amounts of investments compared to other types of means of payment.

[ifinta]

https://www.reddit.com/r/Bitcoin/comments/9u2men/a_criticism_of_bitcoin_as_a_kind_of_money_and_a/

[el kaka22]

This not only an Indian deal too. G20 gathered couple months back and they decided that not only cryptocurrency is a problem for the countries, but it should also be encouraged and taxed properly. Which means the countries in G20 that do not have any cryptocurrency laws (specifically crypto related) will soon have them and probably already working on them.

Governments do not take these steps quickly, they don't wake up one morning and say lets make a new law, it takes a while so they are still probably working on it. But as we can see from that G20 leaders gathering that crypto will be relevant in law for a long time and they are working on it.

India is just another one that is stepping in the right direction but there will be a lot more in the upcoming months soon.

[jrrsparkles]

They are just defending themselves in the precuationary manner,why they need to consider about crypto currencies if its not a threat to the banks (financial system).

[BitHodler]

Bitcoin exists for 10 years and since the beginning people though that mass adoption is coming soon and the revolution will begin, but there's no signs of it coming. It's time to open your eyes and realize that crypto is a niche product that is not suitable for everyone and that majority of the population doesn't care about freedom or privacy.

Tell that to those supporting the scam coin BSV. I almost feel bad for those who legit believe that governments and the corporate world in its entirety will be using their blockchain to operate on.

To accomplish that they are looking to up their block space to over 1TB, which they are extremely serious about. I have never seen this level of ignorance and believe in something that has no chance to survive.

I thought that I have seen everything in the crypto space, but this is some next level shit. I wonder how long they will believe in this nonsense, because it will end bad for those who don't exit on time.

[1Referee]

They are just defending themselves in the precuationary manner,why they need to consider about crypto currencies if its not a threat to the banks (financial system).

I honestly don't see it be a threat to the financial system either. Bitcoin will only become a threat if it challenges the US dollar, and this isn't something I see happening, or at least, not any time soon.

In the end, the main point governments and banks focus on is to have the ecosystem around Bitcoin become a regulated environment rather than something they either ban or selectively attack. Bans and attacks result in economical activities to shift to other countries, or even go underground, which is the last thing you as government want to see happen. You can better have that control than to let it go, and governments start to realize that.

Crypto is power to everyone that wants and needs it, regardless of what their government thinks is good or bad.

[exstasie]

They can say whatever they want to say. They may see it as a shrimp for now but they'll act differently when they see its market cap starts to hit $1T or so.

Is this thread should be on Press?

Apple had $1T marketcap recently, then it crashed by 40% and guess what, the world didn't end, and even American economy didn't suffer from it. And crypto has low liquidity compared to stocks, so marketcap is even more meaningless in this case.

A lot of peoples' retirement funds cratered in value with the recent market losses. 2008 was much worse and that's what people worry about. If 20% gets shaved off the market (indices, not individual stocks) then that's bad for retirement income stability and planning. It can set people back by several years financially.

It's not the end of the world, but I think the basis for some of the fears about crypto threatening financial stability is a context where the crypto market might be orders of magnitude larger. If it's still experiencing 80% or 90% swings at that point, I'm willing to entertain the argument that it could play some role in destabilization (in the context of a broader financial crisis). On its own, I doubt it could ever destabilize the world economy though.

[CristianOff]

It doesn't.
I spoke with a top financial banker, a director of Royal Bank of Canda. See my post.
This banker invested in Bitcoins and Ethereum. While they can't offer advice to offer in cryptocurrencies, they definitely take market opportunities