Why Cryptocurrencies Are a Threat to Central Banks

The dollar won’t disappear, of course—it’s held in vast reserves around the world and used to price everything from computers to steel. But every fiat currency now faces more competition from cryptos or stablecoins. And stablecoins in widespread use could upend the markets since they aren’t backstopped by a government’s assets; a hack or collapse of a stablecoin could send shock waves as people and businesses clamor for their money back, sparking a bank run or financial panic. And since they’re issued by banks or other private entities, they pose credit and collateral risks.

Read the Full Article on Barrons

Related Post

2021-05-19T23:18:18+05:30May 19th, 2021|Categories: Banking & Finance, Crypto Currency, FIAKS daily, Finance, Others, Payment, Report, Trade Finance|Tags: |Comments Off on Why Cryptocurrencies Are a Threat to Central Banks
Subscribe
SUBSCRIBE NOW

Join our weekly Newsletter Today

Stay updated with all latest updates,upcoming events & much more.
close-link
close-image