The Financial Stability Board (FSB), a worldwide financial institution funded by the Bank for International Settlements, has published a new study on the financial stability risks associated with cryptocurrencies. The FSB report states that altcoin market data reporting needs worldwide norms to facilitate effective risk assessment. As Kriptokoin.com, we are giving the details…
Which altcoin projects are considered financial risk?
The 30-page report, released Wednesday, covers various cryptocurrencies, including private cryptocurrencies like Bitcoin (BTC), stablecoins like Tether (USDT), and decentralized finance (DeFi) projects like Avalanche (AVAX). and various financial hazards associated with business sectors. Some important altcoin projects operating in these areas:
- DeFi altcoin projects
- Avalanche (AVAX)
- Terra (LUNA)
- Phantom (FTM) )
- Tezos (XTZ)
- Aave (AAVE)
- Stablecoin projects
- Tether (USDT)
- USD Coin (USDC)
- Binance USD (BUSD)
- TerraUSD (UST)
- UNUS SED LEO (LEO)
The report discusses the impact of stablecoins on the market
In another thread, the report focuses on certain stablecoins that pose a serious threat to the stability of the overall crypto ecosystem due to the dominant trading volumes of stablecoins. He talks about the numerous dangers that are often highlighted, such as the possible collapse of . The FSB also warns of the dangers of rapid DeFi adoption and the consequent lack of openly recognized intermediates, as well as the possibility of increased financial sector involvement.
FSB also addressed the dangers of data gaps in the crypto industry due to the “lack of transparent, consistent and reliable data on the cryptocurrency markets and their interconnections with the mainstream financial system.” The report notes that “these data gaps make it impossible to predict the full breadth of the use of cryptocurrencies in the financial system,” noting that such gaps make it difficult to detect and quantify the risks associated with the crypto market. Officials say that “data on public blockchains is pseudonymous by design” because it is “impossible to identify individuals engaged in cryptocurrency activities.”
Data gaps related to DeFis
FSB, including percentage of households investing in cryptocurrencies, amount of crypto fraud, financial sector access, owners, number and value of payments industry transactions, and more array data space. According to the group, “survey-based metrics are not adjustable and are updated infrequently or occasionally.” The Financial Stability Board cites DeFi-related data gaps such as the unknown percentage of individual and corporate participation, the number of decentralized applications in a blockchain project, and leverage indicators, among other things.
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