S & P Global Ratings – Cryptocurrency need “some regulation” to be successful in the future

S & P Global Ratings – Cryptocurrency need “some regulation” to be successful in the future

S & P Global Ratings released on Monday February 19 a report titled “The Future of Banking – Cryptocurrency Need New Rules to Change the Game.” This report gives details of the possible outcomes of the global financial markets in relation to the actions of the digital money market.

Although a crash in early February, both for traditional and cryptocurrency markets, seems to have been somewhat synchronized, Mohamed Damak, S & P Global Ratings senior director, does not consider this correlation to be relevant in any way US television news reports CNBC.

For now, a significant decline in the market value of cryptomonas would be just a blow across the financial services industry. This is too small to disturb stability or to have an impact on the value of lending to banks that we analyze.

According to the S & P report, retail investors, unlike banks, would be hit hardest if the crypto markets collapse.

We can expect the banks I have analyzed to be largely isolated from problems, considering that their direct and indirect exposure to cryptocurrency seems to be still limited.

Damak also highlighted the importance of regulations in the crypto sphere now.

We believe that the future success of cryptocurrency will largely depend on the coordinated approach of global and policy-makers ‘policies to increase market participants’ confidence in these investment instruments.

The report noted that blockchain technology could lead to a “positive” disruption of global financial markets.

Large companies around the world have already begun to experiment with the blockchain. Lenovo, the IT company recently filed a patent to record a blockchain-based document verification system, and the first major dealings in agriculture using the blockchain were made in January when a soy carriage from America to China was dispatched.

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