The chief financial controller of the United States, an oversight Board for financial stability (FSOC), argues that bitcoin and other cryptocurrencies do not pose a threat to existing financial systems.
In his 152-page report, the FSOC stated that virtual currencies are only a very small number of consumers, and their underlying technology, the blockchain has enormous potential.
Virtual currencies are only a very small number of consumers. The technology of distributed registries, which underpins the cryptocurrency, deserves much more attention. It is noteworthy that this wave of popularity of the cryptocurrency is also a challenge for regulators, since storing the financial data in this system is decentralized.
Other highlights of the report
This view of cryptocurrencies somewhat surprising against the background of loud statements by some leading financial analysts, such as the statement of the General Director of JPMorgan Chase Jamie Daimon, that “bitcoin is a fraud” and should not be taken seriously.
The report also lists the various financial threats, geopolitical risks and cyber security threats facing the global financial system. But bitcoin is not included in the list of threats.
The market of virtual currencies has shown a significant increase throughout 2017. However, despite its phenomenal growth, total market capitalization is still well below $ 1 trillion and are probably too small to be a systemic threat to the global financial sector.