The latest study on economic security concerns linked with digital currencies has been issued by the FSB (Board of Financial Stability), a worldwide monetary institution financed by the International Settlements Bank.
A thirty-page report was released on 16/02/2022. It covers a variety of economic issues associated with many kinds of altcoins and also business sectors. It encompasses decentralized finance, stable coins including Tether, and personal crypto assets such as Bitcoin.
The paper mentions numerous often highlighted dangers, such as the probable collapse of particular crypto assets. This presents a serious challenge towards the overall cryptocurrency network’s integrity owing to stable coins’ overwhelming trade quantities. The Board further warned about the dangers of fast decentralized financing uptake and the resulting lack of readily recognized intermediates, as well as the possibility of increased financial industry engagement.
They have warned about the dangers of insufficient information in the cryptocurrency business. It cites an “absence of open, reliable, and trustworthy statistics on the cryptocurrency sector and associated links to the primary economic sector.”
The Board identified a range of discrepancies. It talks about the percentage of families that have ventured into digital currencies, the number of crypto frauds, banking system exposures, the quantity, and worth of the transactions sector, ownership, among others. “Questionnaire statistics aren’t adjustable, and they are revised seldom or sporadically,” according to the group.
They mentioned an information gap related to decentralized finance. It wrote about the undisclosed percentages of institutional and retail involvement, the number of decentralized apps on a ledger, and strain indicators, among various things.
The FSB said it has little knowledge about the creation of worldwide standardized cryptocurrency monitoring systems, according to Cointelegraph. Due to different sources presenting different data, and no standardization worldwide, they have called for global standards on the same for appropriate management of monetary risk.