The cryptocurrency market has been dying on the vine lately. But it has received a much-needed adrenaline shot from the upcoming G20 summit on cryptocurrencies, Buenos Aires, Argentina this coming Monday and Tuesday.
The G20 Financial Stability Board will discuss the potential impact of cryptocurrencies and coordinate international efforts to eliminate lack of synergy amongst themselves in the emerging cryptocurrency market. It is time for a consolidated message to eliminate all of the confusion.
The upcoming meetings have caused concern by cryptocurrency traders and investors which resulted in the bleeding of the cryptocurrency market.
Bank of England Governor Mark Carney, who is the chair of the Financial Stability Board, has recently published a letter to participating members of the FSB — who include central bankers and finance ministers — stating that cryptocurrencies are not a pressing issue:
“The FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time.”
The Financial Stability Board chairman also highlighted the fact that that crypto-assets only account for less than one percent of global economic output even at their recent peak in November/December 2017.
Carney also outlined an intention to avoid the establishment of new regulation for cryptocurrencies, instead espousing the adaptation of existing rules for the governance of digital currencies:
“As its work to fix the fault lines that caused the financial crisis draws to a close, the FSB is increasingly pivoting away from design of new policy initiatives towards dynamic implementation and rigorous evaluation of the effects of the agreed G20 reforms.”
The announcement saw an immediate and rapid response from the cryptocurrency market, with Ethereum immediately spiking over $60 in just one hour.
Bitcoin experienced a similar reversal, capturing over $800 in gains in the same time frame.
Carney, in addition to his statements on regulation, also announced that the FSB will undergo a thorough review to ensure that the watchdog body is “fit for purpose” when assessing and amending existing financial regulations.
The Financial Stability Board (FSB), which coordinates financial regulation for the G20 countries, on Sunday rejected calls by several countries for cryptocurrency regulation, such as Bitcoin.
The FSB, however, stressed the need for greater international coordination in monitoring these rapidly evolving technologies, which still represent a tiny sector equivalent to less than 1% of global gross domestic product.
“The first assessment of the FSB is that currently, these crypto-assets do not pose a risk to global financial stability,” said Mark Carney, president of the FSB, in a letter to finance ministers and governors of central banks, which will meet in Buenos Aires on Monday and Tuesday.
Whether or not this news will cause the market to recapture lost ground remains to be seen, but the news of an amicable G20 stance toward cryptocurrencies appears to be injecting new life into what has recently been a bloody red market
Are you feeling positive on this news and if so, are you going to ramp up on buying more bitcoin?
Until Next Time…
Faith Sloan “QueenWiki”
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