According to BIS (International Settlements), if the adoption of cryptocurrency increases, it can lead to a risk of traditional financial systems, and according to BIS (BIS), BIS (BIS)
In the April 15 report, BIS warned that the number of investors and capital of encryption and distributed financing (Defi) was “an important concern for regulators.”
The size of the encryption market said that the authorities must worry about the stability of the krypto rather than the role of Tradfi and the real economy.
The report requires the STABLECOIN regulations on the stability and preliminary asset requirements to guarantee the repayment of Stablecoin for the US dollar during the “stressed market condition”.
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The report is two weeks after the US Household Finance Service Committee passed the Stablecoin transparency and responsibility for a better ledger economy or stable law with 32-17 votes on April 2.
Stable action aims to create a clear regulatory framework for Stablecoin, which emphasizes transparency and consumer protection.
On March 13, the genius law to guide and establish the national innovation of Stablecoins in the United States passed the Senate Bank Commission with a 18-6 vote. This law aims to set the mortgage guidelines and must fully comply with the Stablecoin issuer.
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Encryption can worsen the gap between wealth.
BIS also raised concerns about how the encryption market can worsen income inequality by allowing larger investors to use the emotions of less sophisticated retailers, as shown in the FTX collapse in 2022.
The BIS report pointed out that “as the price dropped in 2022, the user actually made more deals.” “The most confusingly, the large bitcoin holder (” whale “) was sold by a general retailer (” KRILL “).” addition :
“This means that the encryption market, which is often presented as an opportunity for comprehensive growth and financial stability, can be a means of redistributing wealth to wealthy people in poor people.”
The report has a fundamental economy with a similar Economic Owner of Defi and Tradfi, but the “unique feature” of Defi, such as “smart contracts and absence,” suggests a new task that requires aggressive regulatory arbitration to promote innovation while protecting financial stability.
https://www.youtube.com/watch?v=kqzhvt77xkw
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