In a recent report from the Financial Stability Board, the crypto market is posited as potentially being able to bring down the financial system. Could this be true, or is crypto being set up as the villain of the piece?
The Financial Stability Board is an international organisation made up of regulators from 24 countries and jurisdictions. It has stated in a report on the Assessment of Risks to Financial Stability from Crypto-assets, that cryptocurrencies have the potential to threaten global financial stability.
One of the reasons for making this prediction is the amount of banks and other large financial institutions that are already getting, or thinking to get, exposure to crypto-assets.
The FSB states:
“Systemically important banks and other financial institutions are increasingly willing to undertake activities in, and gain exposures to, crypto-assets. If the current trajectory of growth in scale and interconnectedness of crypto-assets to these institutions were to continue, this could have implications for global financial stability.”
The report goes on to draw parallels between the current crypto boom and the 2008 financial crisis, triggered by the housing market.
Opinion
It does seem a bit rich that a financial body that serves governments and the banks should want to try and pin the cause of any impending financial crash on such a comparatively small crypto sector that only comprises around $2 trillion.
Let there be no doubt that the fiat financial system is rotten to the core, and any one of a number of faults in the system are a crisis waiting to happen. The chances of one of these being the straw that finally pulls the whole mess down is infinitely greater than crypto doing it.
As the Fed continues to walk the tightrope with inflation on one side, and a deep recession on the other, no one really talks about how we got here. The boom and bust cycles of the past were caused by central banks and governments that tried to play God in the economy, and found out that whatever they did it was either too much or too little.
We’ve now arrived well past the point of no return. The die is cast, and the fiat monetary system lumbers on in its last death throes. Crypto is the escape hatch out of this mess, and it is certainly not the cause of it. Watch for more anti-crypto reports and pronouncements to come out of the mouths of other financial bodies and the mainstream media, all bankrolled by governments and the banks. Hang on to your gold, silver, and crypto. Sound money is the only money that will survive the coming crash.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Credit: Source link
