Bitcoin, Crypto currency, Blockchain

Committee for financial stability: are crypto-currencies to be insignificant, as not to endanger stability

3e9db292d061a4279f0f66abd03e1d7f - Committee for financial stability: are crypto-currencies to be insignificant, as not to endanger stability

The Committee for financial stability (AFS) has analysed, for the fifth Time “the situation and the development of financial stability in Germany”. 27. In June, he presented his report to the German Bundestag. The AFS gives an estimate of crypto-currencies. A risk for the German financial market, you could not see it – Bitcoin & co. in the judgment of the Committee, in accordance with still too insignificant.

The Committee for financial stability (AFS) was established in early 2013 as the Central body. Its mission is the macroprudential oversight of the German financial system. The Federal Ministry of Finance (BMF), the Deutsche Bundesbank and the Federal financial Supervisory authority (BaFin) in each of the three representatives. In quarterly meetings, the Committee reports, which may contain in addition to the description of the Status quo of financial resources and risks, recommendations and warnings. In the self-description of the Committee, he says:

“These [recommendations and warnings] are focused on the prevention of threats to financial stability and to serve as the resilience of the financial system and limit systemic risks.”

Of the Bundestag, presented the report of the AFS refers to the period from April 2017 to March 2018. Since the middle of last year strong rise in the market capitalization of crypto-currencies requirements go hand in hand more and more, government regulation. For this reason, the AFS with their importance for the financial stability of the country.

No currencies, but Token

The AFS avoids the word “crypto-currencies” and speaks instead only of “cryptographic Token”. Bitcoin & co. can, in fact, are not currently regarded as money. Instead, they serve more as objects of Speculation. Explaining the Committee defines money on the basis of three features:

“It serves as a means of payment, as a store of value and as a unit. In contrast to money crypto-Token, for example, hardly as a means of payment for the Pay used in everyday life, because of the General acceptance is missing, and the transaction costs tend to be relatively high. In addition, crypto-tokens such as Bitcoin has no stable assets (Assets), since their rates do not fluctuate significantly.“

In fact, some crypto-currencies are already accepted in isolated cases, as a means of payment. So you can pay for example, in shopping centres in South Korea and Slovenia, with Bitcoin. From a crypto-ceiling-acceptance, but we are still a good piece.

To small to be dangerous

Due to this lack of acceptance, as well as the high transaction costs and fluctuating prices, estimates of the AFS, the segment of the market of Bitcoin & co. despite the strong growth, is relatively small. Also, the low Involvement of banks, insurers and funds is an indication of the negligible importance of crypto-tokens. Therefore, you see them mainly as objects of Speculation. A regulation will not aspire for this reason, initially, but the development track:

“The connection to the traditional financial system in the future could be tighter, for example, when trading in derivatives on crypto-Token on recognised exchanges, including Bitcoin futures contracts, established in the Segment. The Committee will therefore monitor further developments, currently sees but no reason, from a macro-prudential considerations to intervene.“

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