Crypto no more in top 10 most-cited potential risks: Report | The Financial Express

Crypto no more in top 10 most-cited potential risks: Report

According to a central bank survey published by the Federal Reserve System, geopolitical tensions, foreign divestments, COVID-19.

Crypto no more in top 10 most-cited potential risks: Report
The central bank also mentioned the Terra (LUNA) ecosystem collapse

While traditional finance advocates continue to dismiss Bitcoin and the crypto ecosystem as financial risks, a survey conducted by the Federal Reserve Bank of New York — one of the 12 federal reserve banks in the United States — revealed 11 factors that will outweigh crypto in terms of risk in 2022, as reported by Cointelegraph.

According to a central bank survey published by the Federal Reserve System, geopolitical tensions, foreign divestments, COVID-19, and high energy prices were among the most-cited potential risks for the US economy.

The central bank also mentioned the Terra (LUNA) ecosystem collapse, emphasising that entities with direct exposure to the in-house stable TerraUSD (UST) found themselves in financial distress, sometimes leading to bankruptcy.”

On the other side of the globe, India debuted its own central bank digital currency (CBDC) for the wholesale market.

While the country remains opposed to the idea of mainstreaming cryptocurrencies, nine local traditional banks participated in the pilot project, including the State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank, and HSBC.

(With insights from Cointelegraph)

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First published on: 07-11-2022 at 16:34 IST