New investigation by the Bank for International Settlements referring to the crypto market
An investigation by the Bank for International Settlements claims that news of cryptocurrency market regulations positively affects its prices.
Are regulations necessary?
An investigation by the Bank for International Settlements claims that news of cryptocurrency market regulations positively affects its prices. Likewise, news of cryptocurrency bans by governments negatively affects prices within the crypto market. The authors of the article are Raphael Auer, chief economist in the innovation and digital economy unit of the Bank for International Settlements, and Stijn Claessens, head of the financial stability policy of the Bank for International Settlements.
The document states that "at the current juncture, authorities around the world have some margin to make regulation effective." The researchers' analysis leads them to draw some conclusions as to why the role of regulations is so important to the cryptocurrency market: “Why do news events about national regulations have such a substantial impact on crypto assets that they don't Do they have a formal legal address and are they traded internationally? Part of our interpretation is that cryptocurrencies depend on regulated institutions to convert regular currency to cryptocurrencies."
A few days ago, the Bank for International Settlements issued a request to all countries of the world to work on the development of their own digital currencies issued by central banks with the aim of providing innovative solutions to the problem represented by banknotes in the context current expansion of the COVID-19 pandemic. The current context seems the right one for blockchain technology and cryptocurrencies to demonstrate their true potential to the world.