Friday, July 11, 2025
  • Login
Euro Times
No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
Euro Times
No Result
View All Result

ECB expresses concerns over ‘interconnectedness’ of crypto with financial institutions

by Oluwapelumi Adejumo
May 25, 2022
in Cryptocurrency
Reading Time: 3 mins read
A A
0
Home Cryptocurrency
Share on FacebookShare on Twitter


đź‘‹ Wish to work with us? CryptoSlate is hiring for a handful of positions!

The European Central Financial institution warned in its newest Monetary Stability Evaluate that the rising adoption of crypto property by banks and different monetary establishments may have an effect on the area’s monetary stability.

The assessment included a piece titled:

“Decrypting monetary stability dangers within the crypto-asset market.”

In keeping with the regulator, its complete research on “leverage and crypto lending” exhibits that these actions have gotten extra complicated and dangerous.

Buyers have been capable of deal with the €1.3tn fall out there capitalization of unbacked crypto-assets since November 2021 with none monetary stability dangers being incurred. Nonetheless, at this price, some extent shall be reached the place unbacked crypto-assets characterize a threat to monetary stability.

The crypto business is present process intense scrutiny from regulators globally. A current market crash wiped off near $1 trillion from the sector in two months, and it has unnerved regulators.

The assessment acknowledged the development of the crypto market, declaring that buying and selling volumes of crypto property have reached and even surpassed “these of the New York Inventory Alternate or euro space sovereign bond quarterly buying and selling volumes” often.

In the meantime, crypto exchanges are additionally providing their prospects extra monetary merchandise, permitting them to extend their publicity far above their preliminary funding.

The report famous that the total scale of the connection between the crypto business and conventional finance could be unknown as there are “vital informational and knowledge shortcomings.”

Moreover, it listed the assorted situations of this connection between conventional monetary establishments and crypto-assets. These embody banks “buying and selling and clearing derivatives,” funds networks supporting “crypto asset companies,” and institutional traders “investing in bitcoin and crypto-assets extra usually.”

The ECB additionally mentioned the dangers of DeFi, stating that rehypothecation, which is the follow of repledging already-pledged collateral in opposition to one other mortgage, has elevated the probabilities of a breach of leverage restrict.

The report concluded that authorities worldwide ought to work to shut the regulatory gaps within the area whereas urging the EU to approve the MiCA regulation urgently.

This report rehashes the view of ECB President Christine Lagarde. In a current interview, she had mentioned that:

Crypto property are extremely speculative, very dangerous property.

She added that there’s a necessity to control cryptocurrencies as a result of those that’ll lose essentially the most are those that don’t perceive the dangers.

Posted In: E.U., Evaluation

Get an Edge on the Crypto Market 👇

Change into a member of CryptoSlate Edge and entry our unique Discord group, extra unique content material and evaluation.

On-chain evaluation

Value snapshots

Extra context

Be part of now for $19/month Discover all advantages



Source link

Tags: concernsCryptoECBexpressesfinancialinstitutionsinterconnectedness
Previous Post

Terra ecosystem votes to rescue Luna without UST stablecoin (Cryptocurrency:UST-USD)

Next Post

E. Gerald Corrigan, Who Helped Ease ’87 Stock Crash, Dies at 80

Related Posts

Robinhood Offers Crypto Trading “at the Lowest Cost,” but Is It False Advertising?

Robinhood Offers Crypto Trading “at the Lowest Cost,” but Is It False Advertising?

by Arnab Shome
July 11, 2025
0

Robinhood (Nasdaq: HOOD) is dealing with an investigation by Florida’s high prosecutor for claiming that it affords crypto buying and...

Research Predicts 0,000 Bitcoin By EOY, If Treasury Firms Hold

Research Predicts $160,000 Bitcoin By EOY, If Treasury Firms Hold

by Jake Simmons
July 11, 2025
0

Motive to belief Strict editorial coverage that focuses on accuracy, relevance, and impartiality Created by business consultants and meticulously reviewed...

Remixpoint CEO to Receive Entire Salary in Bitcoin

Remixpoint CEO to Receive Entire Salary in Bitcoin

by Emmanuel Musa
July 11, 2025
0

Japanese-listed agency Remixpoint has change into the primary within the nation to pay its CEO completely in bitcoin, aligning government...

OpenAI Faces IRS Complaint Over Alleged Tax Violations

OpenAI Faces IRS Complaint Over Alleged Tax Violations

by Cointelegraph By Martin Young
July 11, 2025
0

Synthetic intelligence watchdog the Midas Venture has filed a grievance in opposition to ChatGPT maker OpenAI, accusing the agency of...

Here Are Top Developments Surrounding XRP Recently That You Should Be Aware Of

Here Are Top Developments Surrounding XRP Recently That You Should Be Aware Of

by Scott Matherson
July 10, 2025
0

Trusted Editorial content material, reviewed by main trade specialists and seasoned editors. Advert Disclosure The XRP ecosystem is witnessing a...

Coinbase Adds Support for Pump.Fun Ahead of $PUMP Token ICO

Coinbase Adds Support for Pump.Fun Ahead of $PUMP Token ICO

by Kelvin Munene Murithi
July 10, 2025
0

Coinbase Worldwide Change has introduced that it'll add help for the $PUMP token forward of its Preliminary Coin Providing (ICO)....

Next Post
E. Gerald Corrigan, Who Helped Ease ’87 Stock Crash, Dies at 80

E. Gerald Corrigan, Who Helped Ease ’87 Stock Crash, Dies at 80

During Capitol attack, Trump reportedly approved of ‘Hang Mike Pence’ chants

During Capitol attack, Trump reportedly approved of 'Hang Mike Pence' chants

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Dividend Kings In Focus: ABM Industries

Dividend Kings In Focus: ABM Industries

July 11, 2025
8th CPC Revised Pension Estimates: Are you Level 2, 4, 6, 8 and 10 employee? Know your projected revised pension at 2.08 and 2.57 fitment factors

8th CPC Revised Pension Estimates: Are you Level 2, 4, 6, 8 and 10 employee? Know your projected revised pension at 2.08 and 2.57 fitment factors

July 11, 2025
Russian basketball player arrested on suspicion of carrying out ransomware attacks

Russian basketball player arrested on suspicion of carrying out ransomware attacks

July 11, 2025
Trump announces 35% tariffs on Canada starting Aug. 1, warns of higher levies

Trump announces 35% tariffs on Canada starting Aug. 1, warns of higher levies

July 11, 2025
Why ACA health insurance premiums may see ‘sharp’ increase in 2026

Why ACA health insurance premiums may see ‘sharp’ increase in 2026

July 11, 2025
Robinhood Offers Crypto Trading “at the Lowest Cost,” but Is It False Advertising?

Robinhood Offers Crypto Trading “at the Lowest Cost,” but Is It False Advertising?

July 11, 2025
Euro Times

Get the latest news and follow the coverage of Business & Financial News, Stock Market Updates, Analysis, and more from the trusted sources.

CATEGORIES

  • Business
  • Cryptocurrency
  • Finance
  • Health
  • Investing
  • Markets
  • Politics
  • Stock Market
  • Technology
  • Uncategorized
  • World

LATEST UPDATES

Dividend Kings In Focus: ABM Industries

8th CPC Revised Pension Estimates: Are you Level 2, 4, 6, 8 and 10 employee? Know your projected revised pension at 2.08 and 2.57 fitment factors

  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In