Topic: The European Union: cryptocurrency can bring stability in the traditional financ (Read 104 times)

At the official request of the European economic Committee, the European Union published its report on the possible pros and cons of the crypt. As it turned out, Central Bank digital currencies (CBDC) can pave the way for a more stable financial system because of their "disruptive" nature. The document also deals with the advantages of cryptocurrencies for developing countries. At the same time, market volatility can lead to unforeseen risks. This is reported by NewsBTC.


The main message of the document – the crypt can lead the world financial system to a more stable state. The CBDC issue requires improvement of individual mechanisms of Central banks ' activities, so They have the opportunity to review the main principles of their activities.

However, the cryptocurrency, there are significant risks. Their main drawback is too high volatility. However, it can be coped with by introducing new trading pairs with Bitcoin. So traders will be more predisposed to trade than to simply keeping coins on your wallet.


The number of cryptocurrency trading pairs with Fiat currency is increasing. This can result in an increase in demand for certain coins and, as a result, in a decrease in Bitcoin volatility.

The report also says about the risks of volatility in traditional markets. For example, banks can't just snap their financial instruments to the cryptocurrency, or else it will greatly affect the price movement of Fiat.

As positive aspects mentioned the benefit of the crypt for Venezuela and China. In the second country, cryptocurrencies are used to avoid tight financial control by the state.

In Venezuela, the population suffers from the incapacity of the traditional monetary system. Cryptocurrencies are helping the Venezuelans to make simple payments for food and medicine. The government went even further and even launched the national cryptocurrency Petro. However, the initiative to reinforce its value with the cost of oil is still questionable.


According to the authors of the document, developers of digital assets need to be more honest and transparent. The crypt is a lack of clarity in Wallpaper. In addition, the ICO market needs to be carefully regulated.