Yesterday, on the eve of the talks of the G20 Finance Ministers and governors of the Central banks is a letter of the President of the Bank of England, Mark Carney became public. In this, Carney turns to the G20 conference and declares that crypto-currencies currently no threat to global financial stability. As a result of the announcement of the entire crypto-currency market has recovered (probably first).
In the letter to the Central Bank governors and Finance Ministers of the G20, will meet on Monday and Tuesday in Buenos Aires, Carney said:
Crypto-assets do not pose risks to global financial stability at this time. This is in part because they are small relative to the financial system. Even at their recent peak, their combined global market value which is less than 1% of global GDP. In comparison, just prior to the global financial crisis, the notional value of credit default swaps what is 100% of global GDP.
Carney refers to the threat to the financial stability so on, the gross domestic product (GDP, in English: GDP). Studies have shown that crypto-currencies even during the Boom-time not identified in the December 1 percent of the total global GDP.
He added that in comparison to the 2008 financial crisis, credit derivatives (“Credit Default Swaps”) 100 per cent of the global GDP. This fact and the fact that crypto-currencies are the currencies in his opinion is not a replacement for Fiat, because they offer very limited ways to use, allow Carney to come to the realization that crypto-currencies are not a threat to global financial stability.
Carney calls for in the letter furthermore, the introduction of new regulations to avoid, and instead, adjustments to the existing rules for digital currencies.
However, he pointed also to the fact that his assessment could change if crypto-currencies have a much more widespread economic and financial transactions. The market can be observed.
Crypto-currency market breathes a sigh of relief temporarily
The strong insecure crypto-currency market has received this much-needed Signal before the upcoming Meeting of the G20 Finance Ministers and governors of the Central banks is very positive. The entire market was the last few days deep in the Minus, probably because of the expectations of the Meeting. This should serve to discuss the impact of crypto-currencies on the world economy. Already before the Meeting, a number of large countries, such as France, Germany and Japan had called for a uniform regulation of crypto-currencies.
The message seemed like a relief for the market. The Bitcoin price rose within a few hours of 700 Euro to rise.
The Ethereum rate has risen by 60 Euro.
Even more, inter alia, NEO (+14%), Cardano (+16%), Stellar (+18%), TRON (+18 %) were able to benefit. Whether the trend reversal will be of long duration, must show still. This is certainly the results of the G20 meeting will be decisive.
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