The recent turbulence in the world of cryptocurrencies has shown that this sector presents similar risks to those of traditional finance and must, when it is the case, be subject to the same rules, affirmed yesterday the vice-president of the central bank. American (Fed) Lael Brainard. Bankruptcy of the cryptocurrency lending specialist Voyager Digital, collapse of the theoretically stable cryptocurrency Terra: several companies have found themselves in turmoil with the marked drop in the value of bitcoin and other virtual currencies since May.
Fed Governor Christopher Waller also pointed out Thursday that despite the plunge in virtual currencies, no bank or investment company seemed to be in danger. “This does not mean that if (the crypto system) was ten times bigger, it would have no effect”, he however underlined during a public intervention. In this context, “this is the right time to ensure that similar risks are subject to similar regulations and transparency rules”, argued Ms. Brainard.
Two elements must be particularly monitored in his eyes: the involvement of traditional banks in the world of cryptocurrencies and so-called stable cryptocurrencies because their course is theoretically linked to that of a traditional currency. “It is important that the foundations for sound regulation of the cryptocurrency-related financial system be established now, before (it) becomes so large or interconnected that it may pose risks to the stability of the financial system as a whole. concluded Ms. Brainard.
The recent turbulence in the world of cryptocurrencies has shown that this sector presents similar risks to those of traditional finance and must, when it is the case, be subject to the same rules, affirmed yesterday the vice-president of the central bank. American (Fed) Lael Brainard. Bankruptcy of the specialist in cryptocurrency loans Voyager Digital,…
