Big Bankers Say Cryptocurrencies Do Not Threat The Global Financial Stability

[Webetcoins]

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.

Well crypto currencies are threat in a way that they are simply making people independent of government. They are not allowing government to interfere in the financial matters of people as there is no taxation on crypto currencies. For common people, cryptos are great but for government tax department, they could act as a threat but at present they are not doing any harm.

[agentx44]

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/

That should already show why cryptocurrencies should be tolerated more all over the world. There are no threats posed for the world's financial stability and it may even help the global economy grow up even more. If we are going to look up at some countries that are regulating bitcoin already, we can see how helpful it is for their economy. Maybe it would take time but I think if ever India regulates crypto, it would contribute a lot for the betterment of the crypto world. Someday sooner, we will definitely see digital currency replacing fiat, we just need to be patient and keep on patronizing it.

[bohr]

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...

But how long is that going to last? No one knows when but it is obvious that the economies of the world are not really in a good shape, they are trying to hide this fact by printing money and by ignoring each other debts but we will come to a point in which it will be impossible to ignore those problems anymore and when that happens many of the people that have no savings and not assets and that only have debts will wake up one day to find out that the world has changed forever and not for the better and they will look for alternatives, and bitcoin will be there to offer one.

[huige007]

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.

Well crypto currencies are threat in a way that they are simply making people independent of government. They are not allowing government to interfere in the financial matters of people as there is no taxation on crypto currencies. For common people, cryptos are great but for government tax department, they could act as a threat but at present they are not doing any harm.

I am pretty sure that government will figure out a way to put some taxes on bitcoin transactions or on over all crypto market. I often say that if governments make deals with exchanges through which people buy bitcoin or make transactions, then government is able to grab its share from crypto users. There is no way government will leave this industry free of taxes and this is why they are not legalizing it yet.

[deisik]

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.

Well crypto currencies are threat in a way that they are simply making people independent of government. They are not allowing government to interfere in the financial matters of people as there is no taxation on crypto currencies. For common people, cryptos are great but for government tax department, they could act as a threat but at present they are not doing any harm

With cryptocurrencies we are simply back to square one, or back to the roots if you like it more this way

I mean we have been on fiat only for a very small amount of time if we compare this period with the amount of time we have not been on fiat. More specifically, fiat, in its present form, came about only a few decades ago, and before that, which had been for quite a few millinea (feel the difference), we were on precious metals as money (since pharaohs, to be exact). And you know what? The government had to live with that somehow

It could debase its official gold or silver coin as much as it pleased, which it in fact habitually did since Ancient Greeks and Romans (and probably pharaohs too), but it couldn't debase the metals themselves, their worthiness and value as such. It is only for the last 40 years that gold lost some of its shine and appeal. But now we have Bitcoin which is going to shine as bright and appeal as strong (with gold as a backup option, indeed)

[luppecuppe]

Bitcoin is an alternative to the global economic system. Today the bitcoin price and total market value may not be too large. The value of the whole market in world markets can be very small. But there is a promise. You don't have to kill the king, you hurt him. Show me you can hurt the king. Now you have learned the limits of the king's power. Bitcoin punched the global economic system.

[bohr]

Bitcoin is an alternative to the global economic system. Today the bitcoin price and total market value may not be too large. The value of the whole market in world markets can be very small. But there is a promise. You don't have to kill the king, you hurt him. Show me you can hurt the king. Now you have learned the limits of the king's power. Bitcoin punched the global economic system.

And the worst part for governments is that they do not have means to strike back at bitcoin, bitcoin punched them and they cannot punch bitcoin back, they cannot just seize a few servers and kill bitcoin since it is everywhere just like the Internet, they are trying to slow down its adoption and they are trying to put hurdles on its path but at the end all of that is useless and they know it, bitcoin is superior to their fiat and the superior product has a strong tendency to win over the inferior product.

[karanggatak]

yes I also think that bitcoin and cryptocurrrency will not threaten the global financial system. because cryptocurrency is decentralized, nobody controls and is not influenced by world political and economic news. so that if something happens with cryptocurrency it will not have an impact on the global economy. so that if a country adopts or legalizes bitcoin it will not threaten the sovereignty of the national currency.

[codegnome]

Action speaks louder than words and we have seen actions of governments along with central banks towards crypto currency and they are not positive at all. With increase in adoption of cryptocurrency governments are brining strict regulations for cryptocurrency. If they have no fear for that then why they banning use of crypto?

[yulionoo]

in my opinion bitcoin will not threaten global financial stability because bitcoin is not the main currency in the world and is also not a global currency. and also if we compare the number of bitcoin investors with the world stock market. of course the number of bitcoin investors is small. so if bitcoin experiences a large pump or dump it will not affect the world economy. bitcoin and cryptocurrency have their own economic pathways.

[bobitza]

I also believe that cryptocurrencies do not affect global finance. On the contrary, it helps the country's economy grow stronger. Usually in countries with high economies, many people will invest in cryptocurrencies. Large capital investment and greater profits. I know that some countries now accept cashless economies. I believe cryptocurrencies will have a foothold in the future. Please give your own opinion.

[breathlessz]

Action speaks louder than words and we have seen actions of governments along with central banks towards crypto currency and they are not positive at all. With increase in adoption of cryptocurrency governments are brining strict regulations for cryptocurrency. If they have no fear for that then why they banning use of crypto?

for the time being, cryptocurrency seemed not to appeal to governments. they seem to only be open to the blockchain, and we know blockchain and cyrpto are different things even though the two are developing together. blockchain can stand without crypto, but not vice versa

[Andrews193]

in my opinion bitcoin will not threaten global financial stability because bitcoin is not the main currency in the world and is also not a global currency. and also if we compare the number of bitcoin investors with the world stock market. of course the number of bitcoin investors is small. so if bitcoin experiences a large pump or dump it will not affect the world economy. bitcoin and cryptocurrency have their own economic pathways.

Looking at market capitalization, especially bitcoin's capitalization, with a capitalization that is too small for the rest of the world, even if the price increase could be many times, the threat level of bitcoin is still too low but obviously, the story that bitcoin can increase many times, it's not easy to happen when the crypto market in recent years has been less volatile on bitcoin. And the financial sector in the world is based on so many different areas combined with strong governance from the government to get the best results, bitcoin is a product without such conditions, it is clear is not threatening

[desticy]

The truth is that cryptocurrency, technically, can destroy an established financial system. More precisely, to destroy the dependence of the world economy on the dollar. All that is needed is the complete eradication of cryptocurrency volatility, which is extremely difficult due to the limited number of the same bitcoins. However, this does not mean that you cannot use another currency that can get rid of dependence on bitcoin in the future.

[hunterWood]

I wonder what kind of marketcap Bitcoin needs to have in order to be a threat. As it stands right now Bitcoin's marketcap is penuts in order to be a threat.

[BChydro]

The truth is that cryptocurrency, technically, can destroy an established financial system. More precisely, to destroy the dependence of the world economy on the dollar. All that is needed is the complete eradication of cryptocurrency volatility, which is extremely difficult due to the limited number of the same bitcoins. However, this does not mean that you cannot use another currency that can get rid of dependence on bitcoin in the future.

The things you are taking about are impossible, you cannot remove the volatility and you cannot destroy the dependence of the US dollar globally for trading and if that were to happen you need to give incentives to the merchants globally for transacting in bitcoin which is not going to happen and if they are planning to purchase bitcoin in huge number they need to spend a lot of money if they want to trade using bitcoin for any huge deals, so do they go the confusing route or the easy route the banking system to send the money, if you are a bitcoiner then it is easy to trade globally but if you are new then it is another hurdle.

[deisik]

The truth is that cryptocurrency, technically, can destroy an established financial system. More precisely, to destroy the dependence of the world economy on the dollar. All that is needed is the complete eradication of cryptocurrency volatility, which is extremely difficult due to the limited number of the same bitcoins. However, this does not mean that you cannot use another currency that can get rid of dependence on bitcoin in the future

As a currency, Bitcoin is not a competitor to the dollar

So it can't possibly destroy the established financial system as represented in this day and age by the American dollar. It can compete with the latter as a very unconventional store of value due to its complete disconnection and separation from the mentioned system, but there are many other classes of assets which are as independent and self-sufficient as Bitcoin (for example, precious metals, to name but just a few)

[TastyChillySauce00]

for the time being, cryptocurrency seemed not to appeal to governments. they seem to only be open to the blockchain, and we know blockchain and cyrpto are different things even though the two are developing together. blockchain can stand without crypto, but not vice versa

Entirely different thing, blockchain is simply a system if the government want they'd modify it to suits their need and that practice already happening to all those stablecoins. Meanwhile, crypto is created for the sole purposes of opposing centralization in this case to let no people get too much power and also to create cashless society replacing the existing paper money. Country like China might be using blockchain to further advance their system and possibly improvise it to some certain extent, blockchain is versatile after all.

[Shasha80]

I strongly agree that cryptocurrency does not threaten the global financial stability. Because it used and owned cryptocurrency still a minority,
so how can it threaten global financial stability. And also no one country that uses cryptocurrency as a major currency. Then I totally agree
with the saying that cryptocurrency is not possible to replace the role of fiat. Very few countries have banned cryptocurrency, because both
governments and banks know that cryptocurrency will not threatens global financial stability.If there is a country that prohibits cryptocurrency
in my opinion only paranoid.

[bohr]

I've always thought the same thing, because I don't really see how cryptocurrency affects banks, although I think it could affect how much they earn from transactions as many people might start opting for Bitcoin to make transactions. But apart from that, I don't think cryptocurrency impacts banks any other way. If it affected them, they would have started all this while against it, and that would have caused the government to stop once and for all cryptocurrency.

There are many ways in which the banks earn money and one of them is the use of fees, bitcoin may charge fees that could be too expensive for some of your everyday activites like buying a cup of coffee but when it comes to larger amounts of money bitcoin is way cheaper and faster than the banks and I do not know of a single business that likes to lose some of their safest forms of revenue, so banks will be affected somewhat by this in the future but that will not be enough to make them disappear as many people think.