The central banks of the United States, Canada, Mexico and Brazil have pointed out the risks of crypto but warned against excessively prohibitive laws.

Cryptocurrencies like Bitcoin

BTC

$25,857

have failed to reduce but rather have “amplified financial risks” in less developed economies, according to a new study published by the The Bank for International Settlements (BIS).

On Aug. 22, the Consultative Group of Directors of Financial Stability (CGDFS) released a new report on cryptocurrencies, titled “Financial stability risks from crypto assets in emerging market economies.”

The study was conducted by BIS member central banks within the CGDFS, including those in Argentina, Brazil, Canada, Chile, Colombia, Mexico, Peru and the United States. The document emphasized that the views expressed are those of the authors and “not necessarily the views of the BIS.”

According to the authors of the study, cryptocurrencies like Bitcoin hold out the “illusory appeal” of being a quick solution for financial challenges in emerging markets.

“They have been promoted as low-cost payment solutions, as alternatives for accessing the financial system and as substitutes for national currencies in countries with high inflation or high exchange rate volatility,” the study reads. As cryptocurrencies allegedly extended the financial stability risks of emerging markets, authorities have many policy options to address those risks, ranging from outright bans to containment to regulation, the report notes.

https://cointelegraph.com/news/crypto-amplified-financial-risks-in-emerging-markets-bis-papers

The central banks of the United States, Canada, Mexico and Brazil have pointed out the risks of crypto but warned against excessively prohibitive laws.

Cryptocurrencies like Bitcoin

BTC

$25,857

have failed to reduce but rather have “amplified financial risks” in less developed economies, according to a new study published by the The Bank for International Settlements (BIS).

On Aug. 22, the Consultative Group of Directors of Financial Stability (CGDFS) released a new report on cryptocurrencies, titled “Financial stability risks from crypto assets in emerging market economies.”

The study was conducted by BIS member central banks within the CGDFS, including those in Argentina, Brazil, Canada, Chile, Colombia, Mexico, Peru and the United States. The document emphasized that the views expressed are those of the authors and “not necessarily the views of the BIS.”

According to the authors of the study, cryptocurrencies like Bitcoin hold out the “illusory appeal” of being a quick solution for financial challenges in emerging markets.

“They have been promoted as low-cost payment solutions, as alternatives for accessing the financial system and as substitutes for national currencies in countries with high inflation or high exchange rate volatility,” the study reads. As cryptocurrencies allegedly extended the financial stability risks of emerging markets, authorities have many policy options to address those risks, ranging from outright bans to containment to regulation, the report notes.

https://cointelegraph.com/news/crypto-amplified-financial-risks-in-emerging-markets-bis-papers