- 20% of contacted professional think that crypto carries inherent risks
- A survey published in the latest semiannual report on financial stability terms cryptocurrency as risky
- Fed Chair Jerome Powell’s called somewhat cryptocurrency Dogecoin rise as frothy
The increasing popularity of cryptocurrencies also means that some skeptics must be heard to give a balanced view on the new financial order, which is sweeping the world.
Coindesk reports that a Federal Reserve survey of market contacts found brokerage firms, investors, political advisers, and academics feel that cryptocurrencies have the potential of disturbing the existing financial system. The U.S. Central Bank had asked the opinion of 24 professionals. 20% of those contacted felt that cryptocurrencies/stablecoins are a potential risk to financial stability.
Fed’s latest semiannual report label cryptocurrency risky to financial stability
Coindesk reports that the survey was included in the Fed’s latest semiannual report on financial stability and was published on Thursday. Interestingly Fed’s staff made no mention of cryptocurrencies in their analysis of the risks. They also made no mention of them either in their earlier report published in November.
Notably, the Fed’s staffers made no mention of cryptocurrencies. It was also not mentioned in the previous report. Coindesk reports that Fed staffers did point to valuations for some assets inflated due to historical norms. It was something which Fed Chair Jerome Powell called frothy last week.
Bitcoiners see the Federal Reserve paper currency printing as a potential threat.
Powell answered a question by a reporter who mentioned the meme-based cryptocurrency dogecoin (DOGE, +3.31%) had surged 122 fold and reached 60 cents and a market cap of $77.5 billion. It was more than the stock market value of CME, the Chicago-based commodity exchange company.
The same story repeats with Bitcoin(BTC), which has almost doubled its market cap and reached$1.05 trillion.
Coindesk quoted bitcoiners who see the Federal Reserve as a potential threat to financial stability. The risk of inflation is the U.S. central bank’s money-printing of trillions of dollars since early 2020.
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