{"id":2009098,"date":"2023-08-23T09:56:02","date_gmt":"2023-08-23T13:56:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bis-warns-that-cryptocurrency-is-amplifying-financial-risks-in-developing-economies\/"},"modified":"2023-08-23T10:02:10","modified_gmt":"2023-08-23T14:02:10","slug":"bis-warns-that-cryptocurrency-is-amplifying-financial-risks-in-developing-economies","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bis-warns-that-cryptocurrency-is-amplifying-financial-risks-in-developing-economies\/","title":{"rendered":"BIS Warns That Cryptocurrency Is Amplifying Financial Risks in Developing Economies"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbis-warns-that-cryptocurrency-is-amplifying-financial-risks-in-developing-economies%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2009098&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div data-post-content=\"true\" class=\"post_content\" id=\"post_content\">\n<p>The Bank\u2063 for\u200c International Settlements (BIS) \u200chas\u200c claimed that cryptocurrency \u2064assets are amplifying rather than reducing financial risks in \u200bemerging market (EM) \u200ceconomies.<\/p>\n<p>The report,\u2064 which was published on Aug. 22, recommended \u2064that regulators should \u2064oversee crypto the same way they\u2064 monitor other assets, according \u2063to warnings from central banks\u2063 worldwide.<\/p>\n<p>The Consultative Council for the Americas (CCA), which\u2062 includes policymakers from central banks in the United States, Argentina, \u2064Brazil, Canada, Chile, and Mexico,\u200d prepared this report.<\/p>\n<div class=\"shortcode\">\n<div class=\"border-comp-divider mb-4 mr-4 w-full max-w-[500px] border px-5 py-4 text-[16px] leading-[20px] text-[#262626] md:float-left\">\n<div class=\"mb-3 font-sans text-[16px] font-semibold uppercase leading-[19px] text-[#2F2F2F]\">Related \u200cStories<\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\"><a href=\"http:\/\/www.theepochtimes.com\/article\/europe-approves-worlds-first-cryptocurrency-regulations-5272559\">Europe Approves World\u2019s First Cryptocurrency Regulations<\/a><\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">5\/18\/2023<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[120px]\"><a href=\"http:\/\/www.theepochtimes.com\/article\/europe-approves-worlds-first-cryptocurrency-regulations-5272559\"><\/a><\/div>\n<\/p><\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\"><a href=\"http:\/\/www.theepochtimes.com\/article\/imf-opposes-making-cryptocurrency-legal-tender-5081334\">IMF Opposes Making Cryptocurrency Legal Tender<\/a><\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">2\/24\/2023<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[120px]\"><a href=\"http:\/\/www.theepochtimes.com\/article\/imf-opposes-making-cryptocurrency-legal-tender-5081334\"><\/a><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>The CCA noted that crypto has been promoted as a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-best-health-supplements-for-an-unhealthy-world\/\" title=\"The Best Health Supplements for an Unhealthy World\">low-cost form<\/a> of payment\u200d and as a substitute for local currencies in countries\u200b suffering from <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/5-reasons-making-taxpayers-pay-off-student-loans-is-a-rotten-idea\/\" title=\"5 Reasons Making Taxpayers Pay Off Student Loans Is A Rotten Idea\">high inflation<\/a> or <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bis-warns-that-cryptocurrency-is-amplifying-financial-risks-in-developing-economies\/\" title=\"BIS cautions: Cryptocurrency heightens risks in developing economies.\">facing \u200bhigh exchange rate volatility<\/a>.<\/p>\n<h2>Developing Markets Increasingly Adopting Cryptocurrency<\/h2>\n<p>The BIS said that\u2064 the adoption of cryptocurrencies adoption has\u2062 been on the rise \u200din EMEs, \u2062to help boost limited investment and \u2063overcome \u200cweak \u2062financial instruments \u200cin those poorer countries.<\/p>\n<p>According to Chainanalysis, two \u2062out of the\u2064 top 20 countries\u200d that are considering adopting \u200dcrypto are emerging markets.<\/p>\n<p>Many citizens in \u200cthese nations are\u200d in \u2062favor of\u200b cryptocurrency systems, as they may offer a chance at providing a safer haven against\u200b weak national currencies.<\/p>\n<p>Countries \u200csuch as Venezuela, El Salvador, and Nigeria are experimenting \u200dwith using them as a financial alternative to avoid\u200c volatile inflation rates.<\/p>\n<p>Even so, official banking authorities in emerging economies remain concerned about having less ability to monitor crypto\u200d assets and to assess their <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/tumbling-rouble-claws-back-ground-as-central-bank-to-meet\/\" title=\"Ruble rebounds as central bank prepares for meeting.\"><a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-inches-closer-to-developing-central-bank-digital-currency\/\" title=\"Fed Inches Closer to Developing Central Bank Digital Currency\">financial stability<\/a>\u2063 risks<\/a>.<\/p>\n<p>Central\u200b bankers fear that widespread cryptocurrency use could worsen\u200c financial stability risks in these\u2064 economies \u2064due to \u200dweak legal systems that could make it harder to enforce contracts.<\/p>\n<p>The international financial group \u200dadded that &#8220;inconsistent enforcement can create confusion and raise market risk.&#8221;<\/p>\n<p>However, \u200cthe BIS said that \u2063cryptocurrency as \u200da \u2064solution to payment\u200c challenges in EM \u200ceconomies should\u200d not be classified as a threat, as they provide a\u2064 valuable alternative form of exchange, but it still believes that the \u2063appeal of digital currency as \u2062a solution in those markets \u2063was &#8220;illusionary.&#8221;<\/p>\n<p>&#8220;Crypto assets\u200d have so\u200d far not reduced \u200dbut rather amplified the financial \u2064risks in less developed economies. Therefore, they\u200d should be assessed from a risk and regulatory perspective like \u200call \u2064other assets,&#8221; \u2063said the report.<\/p>\n<p>The CCA also cited that \u2064the &#8220;combination of the lack of financial literacy and technological knowledge&#8221; in EM economies \u200dmay potentially become a \u200c&#8221;catalyst for risks to financial stability, especially\u2063 concerning crypto assets.&#8221;<\/p>\n<h2>Banking Regulators \u200cRemain\u200c Skeptical \u200bAbout Crypto<\/h2>\n<p>For over a decade, \u200dthe \u2062International Monetary Fund and the BIS\u2062 have been monitoring the growing risks to global financial \u2062stability from cryptocurrencies, as it expanded\u200d from a niche market to\u200c a $2.9 trillion industry b<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Bank for International Settlements (BIS) has claimed that cryptocurrency assets are amplifying rather than reducing financial risks in emerging market (EM) economies.The report, which was published on Aug. 22, recommended that regulators should oversee crypto the same way they monitor other assets, according to warnings from central banks worldwide.The Consultative Council for the Americas<\/p>\n","protected":false},"author":327,"featured_media":2009099,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2009098","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2009098","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/327"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2009098"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2009098\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2009099"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2009098"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2009098"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2009098"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}