The Bank for International Settlements (BIS) has published a Bulletin, Eliminating Risks in Cryptocurrency: Options. Prohibition, isolation, regulation – such options for the crypto industry are seen by experts.
BIS has considered the risks associated with digital assets and proposed several options for addressing them, which are available to regulators and central banks. The authors of the document identified only three possible directions in which cryptocurrencies should be moved: prohibition, isolation, regulation.
In the first option, the authors propose to prohibit certain cryptocurrency transactions that could potentially harm the financial system. In the second, isolate the industry from traditional finance and the real economy, so as not to harm them, and regulate separately. In the third option, it is proposed to regulate cryptocurrencies by analogy with traditional markets.
However, the bulletin emphasizes that these options are not mutually exclusive and can be used simultaneously or combined, depending on the situation.
The experts also noted that, despite a whole string of problems and losses that cryptocurrency investors had to face recently, the traditional financial system was practically not affected. However, this does not guarantee that this will continue to be the case in the future as the interconnection between decentralized and traditional finance intensifies.
Earlier, the CEO of the international payment system Visa Alfred Al Kelly (Alfred Al Kelly) said that the industry needs to be regulated as soon as possible in order to restore people’s trust.
Source: Bits
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