The ECB also known European Central Bank has release a report related to risks of financial stability of crypto market. It reveals that 10% of the households might own the cryptocurrencies. Here, report also confirms that growing the Institutional and retail interest has put the crypto on the radar. It helps to lead to research getting published.
Almost 6% of the crypto owners confirms that they possess $32,000 and above worth of assets. On the other hand, the households that are having the lower slab of income are more possibly to hold crypto as compared to households of middle-income. Here, authors confirm that “stellar growth, financial innovation and volatility are few great reasons to assess different set of risks of crypto market.
Attitude of Risk and Crypto is changing
In past, where ECB had seen some kind of risks of the crypto on the financial stability to be limited. However, development like the DeFi decentralized finance that also has changed the opinion.
This clearly highlights the stablecoins, that is a concern for many. Also, latest TerraUSD crash since they are the key examples of different types of risks. The Stablecoins are mainly among greatest worries for regulators with various economies that work on ways for tackling the implementation.
Presence increasing despite the crash
With crypto getting closely integrated with international economy, the risks might also have some kind of justification. At single point of time, crypto market known as a perfect hedge against different risks. However, such belief seems quite disappearing. Moreover, crypto market that gets tank with others during such kind of recent crash.
There are few countries which are all in as well as making bitcoin to be the legal tender. It also has irked international bodies such as IMF also known as International Monetary Fund which is claiming adoption and that can also pose the risks.
