The Bank for international settlements (BIS) believes that the network is completely controlled by the Ripple XRP. Published a report on the results of the study based on quotes from the news from the sphere of regulation of the top cryptocurrencies them “not afraid” only asset in Ripple.
The aim of the study conducted by Raphael Auer (Auer Raphael) and by Claessens Stijn (Stijn Claessens), to know whether it is possible to work with the cryptocurrency within the national regulation, and how much it affects the course. The authors used the methodology of assessing the reactions of the crypto market to the emergence of information relating to regulatory issues.
In the context of work was discussed 7 the leading cryptocurrency, Bitcoin, Cash Bitcoin, Ethereum, Litecoin, Monero, and zcash for XRP. The Bank has tested the sensitivity of their course to the information appearing in the press and the related regulatory issues. This was chosen 151 news from the most important markets, namely China, India, Japan, the United Kingdom and the United States, — employees of the BIS have compared them with the dynamics of prices. In the end, was composed of “a global index of the influence of news about regulation of cryptocurrencies” (eng. global cryptocurrency regulatory news index, CRNI), represented as a linear combination of the three parameters relevant news with the weight coefficients equal to the average effect of the information on the exchange rate for bitcoin has already been discussed previously in the Bank. Thus, the susceptibility of cryptocurrencies compared with those that showed bitcoin.
“…we found that both the “clone bitcoin” — Bitcoin and Litecoin Cash — as well as the second cryptocurrency in terms of market capitalization Ethereum react significantly, which is evident from CRNI. The effect is not significantly different from bitcoin, that is, they depend heavily on these events, as well as bitcoin,” reads the report.
After analyzing further, “the so-called dark coins” Monero and zcash for offering a new level of anonymity, analysts revealed: Monero reacts much stronger than bitcoin, while the zcash for to a lesser extent.
As for Ripple and XRP, the authors came to the following:
“Token XRP also reacts poorly, which may reflect the fact that his network of trusted nodes — centralized and controlled by the Issuer Ripple, making the token XRP is different from other, more independent cryptocurrency”.
Representatives of bitcoin-startup from San Francisco, for many months defending the decentralized nature of the token and is already involved in several proceedings on this occasion, have not given their comments. However, it is noteworthy that a few months ago, the CEO of the company brad Garlinghouse (Brad Garlinghouse) expressed confidence that bitcoin itself “controlled by the Chinese.”
Overall, the main conclusions presented by analysts of the Bank for all cryptocurrencies, as follows:
- Cryptocurrency has attracted attention for its sharp fluctuations, but also raised a number of issues for regulators;
- Although it is believed that crypto-currencies operate beyond the reach of national regulators, in fact, their evaluation, transaction volume and user base react significantly to news about the measures taken by the regulators;
- News related to the ban on cryptocurrencies or their consideration in the framework of securities legislation, have the greatest negative impact on the quotes, followed by information on combating money laundering and the financing of terrorism, then toughen the position of the authorities regarding the potential compatibility of crypto-currencies and regulated markets. The time frame of the appearance of news reports indicating the establishment of a legal framework for cryptocurrencies and ICO, on the contrary, coincide with a significant growth markets;
- Given that digital currencies are based on regulated financial institutions (approx. for currency conversion), and the market is still divided in various jurisdictions, cryptocurrency is in the field of action of national regulation.