According to representatives of the European Parliament Committee on economic and monetary Affairs, cryptocurrency will not be able to oppose the economic power of Central banks. It is reported by CoinDesk, citing published by the office document.
The report says that despite “a relatively safe, transparent and fast” financial transactions, scriptactive not represent a threat to the national currencies of various countries of the world.
Analysts based in Warsaw, Center for social and economic research noted that cryptocurrency has brought a positive change in the world of Finance. So thanks to new assets, transactions can be done “globally, ignoring national boundaries”.
Also, according to analysts, crypto-currencies “react to actual market demand” and they have the potential to become a “full-fledged private money” or even sustainable for the global economy.
However, the researchers emphasize that it is unlikely that a cryptocurrency can be a threat to the Central banks and national currencies. It is also unlikely that the digital assets are able to ever liquidate the established monetary system, especially countries whose currencies are popular on a global scale. This thesis is confirmed by the fact that currently, the total capitalization of cryptocurrencies ($257 billion) is incomparably small compared to the total value of major currencies in circulation.
However, analysts are convinced that “there may be some exceptions”. For example, cryptocurrencies can enjoy considerable popularity in economically unstable countries such as Venezuela, presenting an alternative to the rapidly depreciating national currency.
The researchers also expressed the view that regulators should treat cryptocurrencies as well as to all other financial instruments, and to consider the potential risks associated with money laundering, tax evasion, various illegal activities.
We will remind, earlier the government of the Netherlands has published a report which says that cryptocurrencies threaten the financial stability of this country.