A report published by the Financial Stability Board (FSB) was recently released and, the international body that monitors and makes recommendations about the global financial system, has claimed that cryptocurrencies do not currently pose a risk to global financial stability.
The report also suggests that vigilant monitoring is needed due to the speed of market developments, while asserting that cryptocurrencies could have implications for financial stability in the future, should the use of crypto-assets continue to evolve.
Leading projects within the blockchain and cryptocurrency space, including: Orvium; qiibee; and Lisk provide useful insights on the findings of the report, and what it means for the broader blockchain and crypto landscape
Michael Borowiec, Communications Lead at Lisk, the decentralized blockchain application platform said:
We welcome the report’s findings but it is important to note that the cryptocurrency market is still only in its infancy with regard to capital, product development, and adoption levels. As such, it is perhaps too early to have a robust discussion about the impact of cryptocurrencies on global financial stability.
The issues outlined in the report regarding market volatility and risks illustrate how the cryptocurrency market is gradually maturing and becoming increasingly compliant with the practices of established industries.
With any cutting-edge technology, a positive and rational approach from global research and regulatory institutions is crucial to nurture sustainable growth. As for the future, the focus should be on blockchain’s ascension as a true competitor to centralised solutions, and what impact this will have on the global economy, similar to the internet’s rise in the nineties.”
Gianluca Giancola, Co-founder and CDO of qiibee, the Swiss loyalty token protocol helping brands around the world run their loyalty programs on the blockchain, said:
As an industry that is still very much in its nascent stages the findings of the report, which state that cryptocurrencies do not pose a risk to global financial stability, are not surprising.
The crypto industry moves at a fast and furious pace and is continuously evolving. With this in mind, reports like this from the Financial Stability Board are very welcome.
The report serves as a reminder of certain issues that need to be rectified, such as that of a global consensus on regulation. As the asset class continues to grow in popularity, the insistence to protect consumers and investors is becoming more prevalent and should remain the broader issue which needs to be addressed in order to protect the reputation of the market.”
Manuel Martin, Co-Founder of Orvium, the first decentralized social platform for scientific collaboration, funding and publications management based on Blockchain and Artificial Intelligence, said:
The findings of the report give expression to the strong efforts of those in the space to comply with whatever regulatory frameworks apply to them. It also demonstrates how the cryptocurrency revolution, and blockchain innovation more broadly, is geared towards positively transforming the financial services sector, not undermining global financial stability.
This is a very exciting time for many groundbreaking projects operating within the global blockchain space. With any revolutionary technology, there will be surges of activity, and phases of renewal. This is normal. As such, the report also paints a picture of an industry that is rapidly evolving, and steadily maturing.
The important thing is to keep a sharp eye on the big picture. Together, we are all building the foundations for a sustainable blockchain and crypto ecosystem, built on the principles of transparency, efficiency, and sustainability.”
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