Global Financial Stability Is Not Threatened By The Crypto Assets, Says Russian Central Bank

On May 30th the Central Bank of Russia published a report, which states that at the moment crypto assets do not do not pose any threat to global financial steadiness as the worldwide amount of cryptographic transactions is very poor.

The study says that in lieu of the term “cryptocurrency”, the Financial Stability Board suggests to use the term ”crypto asset”, which can be discussed as  a financial and monetary asset based on the use of cryptography and allocated Ledger technology.

As per the report, crypto assets do not pose a threat or any danger to worldwide financial stability, due to the volume of crypto asset transactions which is very low in comparison with the scope of the world financial system. According to the report, the ratio of this segment to the financial system is insignificant.

The article states that crypto assets can pose a risk to financial stability in the event of further market growth, large-scale attraction of private and institutional investors, banks and other market players. As per the report of the Central Bank, the high volatility of asset prices the crypto prevent them to be a reliable standard of value, medium of exchange and a store of value.

In addition, the document outlines a number of risks associated with investing in crypto assets, including lack of investor protection, money laundering and terrorist financing prevention risks, lack of market liquidity, operational risks and leverage.

In addition, the document outlines a number of risks associated with investing in crypto assets, including lack of investor protection, money laundering and terrorist financing prevention risks, lack of market liquidity, operational risks and leverage.

Earlier this month, the state Duma of the Russian Federation approved in the first reading a new law on the crypto industry. Laws define crypto-currencies and tokens as property, as well as the specification of the layout to communicate with crypto and blockchain technology.

 

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