The Financial Stability Board’s chairman, Mark Carney, who also heads the Bank of England, has sent a letter to the G20, saying that the organization doesn’t see bitcoin and other cryptocurrencies as a threat to the global economy. The FSB is an international body that monitors and makes recommendations about the global financial system.
“The FSB’s initial assessment is that 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,” Carney wrote.
“Even at their recent peak, their (cryptocurrencies) combined global market value was less than 1% of global GDP,” he added. “In comparison, just prior to the global financial crisis (in 2008), the notional value of credit default swaps was 100% of global GDP.”
The letter comes ahead of the 2018 G20 meeting in Argentina, starting on Monday. At the summit, the participants will discuss bitcoin and cryptocurrencies, and their influence on the global financial stability. A number of leading economies – France, Japan and the US – have called for a joint response to the speculation around bitcoin and other digital money.
Bitcoin reacted bullishly to Carney’s letter. The cryptocurrency surged over 8 percent to $8,400 on Monday, which is still over 50 percent off the $20,000 peak seen in December 2017.
Ripple, ethereum, bitcoin cash, cardano and other cryptocurrencies were also trading in the positive zone, buoyed by the surge in bitcoin. More than 90 of Coinmarketcap’s top 100 cryptocurrencies were gaining on Monday.
Transparent Exchanges are the Future of Bitcoin
Tax evasion and money laundering are not going to be accepted by Governments around the world and the true future of Cryptocurrency is not dependent on criminals and money launderers, some crypto houses like G-BiT have seen the writing on the wall and build a system that is compliant with international Anti Money Laundering and Tax Laws.
There is no doubt some CryptoCurrencies with fail, some will be scams, and some will live on to change the very nature of money and wealth, no wonder the old dudes are scared.
CryptoCurrencies is not about Tax Evasion or Money Laundering, real hardcore fundamental CryptoCurrency Exchanges like G-BiT have seriously tackled the Money Laundering and Tax issues, that’s why they have such a bright future. While the Establishment still wants you to be hit with heavy fees and delays sending money around the world the reality is that is legalized theft built in to the Banking Sector and is not a product of cost or reality, CryptoCurrencies have proven that!
Got questions on Bitcoin, Ethereum, Ripple or BitConnect? G-BiTX has the answers, the company has launched a channel on Telegram to help people navigate the world of CryptoCurrencies.
Join the Channel Now, Click Here
Latest posts by S. Jack Heffernan Ph.D (see all)
- Italy Tackles Mobile Phone Addiction - July 22, 2019
- Shanghai Stocks Exchange’s Sci-Tech Innovation Board the STAR Market - July 22, 2019
- A Look at Post Trade War Asia - July 21, 2019