FSOC: Bitcoin is not a threat to the modern financial system

FSOC: Bitcoin is not a threat to the modern financial system

The top financial regulator, the US Financial Stability Oversight Council (FSOC), says Bitcoin and other cryptocurrencies do not pose a threat to existing financial systems around the world. The FSOC's 152-page report said that while cryptocurrencies are used by very few people, their underlying blockchain technology has enormous industrial potential.

Currently, few consumers use cryptocurrencies, and even fewer use them as a medium of exchange. We are paying much more attention to the so-called distributed ledger technology, which underlies all digital currencies. It is also noteworthy that the wave of popularity of cryptocurrencies is a huge problem for regulators, since the storage of information about transactions and financial data does not occur in one place, but is completely decentralized. 


Highlights from FSOC Treasury Secretary Steven Mnuchin's report:

The report did not mention Bitcoin in a negative context, which is surprising, especially after high-profile statements from individuals such as JPMorgan CEO Jamie Dimon. 

-The report also lists various financial threats, cyber attack opportunities and geopolitical issues facing the global economy. Bitcoin is not on this list of threats.

-The report also indicates that the cryptocurrency market showed significant growth throughout the year. But despite its phenomenal growth, the total market capitalization of the market is still less than $1 trillion and certainly too small to be a threat to the global economy.



According to https://cointelegraph.com

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