Bitcoin, Crypto currency, Blockchain

Trade in cryptomunten poses no threat to financial stability

Cryptomunten as bitcoin and ripple are currently no risks for the financial stability in the Netherlands. Therefore, the trading volume at this time is limited. Also, are only a few financial institutions exposed to the digital currency.

However, there is a possible problem with crypto’s when it comes to finance, crime, scams, and the major losses which private investors may face, reports the Central Planning bureau (CPB) in a Tuesday report.

Also put the planning bureau questioned the high energy consumption. The so-called mining of bitcoin is according to a study by Digiconomist good for 0.3 percent of the global energy consumption.

In the future, however, risks arise if the trade in crypto’s become more and more intertwined with the mainstream market. Various financial institutions are exploring the possibility of crypto’s for their international payments.

Also, central banks worldwide, whether they own forms of digital coins are willing to spend. This happens for example in Sweden, where a digital version of cash money is issued.

Loan

A number of U.s. banks doesn’t allow consumers to cryptovaluta to purchase with their credit cards. Dutch banks have such a prohibition is not set.

Approximately 2 percent of the private investors in the Netherlands are financing the purchase with a loan. As a result, financial institutions in the Netherlands, according to the CPB, no major risks when digital coins would crash.

Potted

Currently, crypto, especially by individuals in investment, mainly put in the garden instead of issued. Approximately 490.000 Dutch households crypto’s. That comes down to 6.5 percent.

According to the CPB, this way of storing value is risky, because it is not clear whether a token associated service is actually delivered.

According to the CPB is the future of crypto’s difficult to predict. The collapse of the market is conceivable. Institutional investors will not be as fast car unsecured exposure to the coins. Stricter surveillance and a greater demand may provide for more stable prices.

See also:
When investing in cryptogeld share price may suddenly quite down


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