• The ECB publishes the report focused on cryptocurrency industry risks monitoring.
  • The risks of spillover effect on the real economy are limited now.

The European Central Bank (ECB) published a report “Understanding the crypto-asset phenomenon, its risks and measurement issues”. The document outlines the need for continuous monitoring of the crypto industry development.

"The ECB has been analyzing the crypto-asset phenomenon with a view to identifying and monitoring potential implications for monetary policy and the risks crypto-assets may pose to the smooth functioning of market infrastructures and payments, as well as for the stability of the financial system,” the report says

In particular, ECB experts believe that the “community of central banks” should improve the tools used for cryptocurrency transaction monitoring.

Huge data gaps remain unaddressed in the current framework, which makes it harder to effectively monitor the risks and developments within the cryptocurrency industry, the ECB believes.

Also, despite that blockchains are deemed to be transparent, transaction data is collected haphazardly, which also prevents regulators from assessing the state of the market. Further work is needed to obtain relevant insights from public networks.

ECB analysts emphasized that it was vital to build a solid statistical classification for crypto assets and develop the basic requirements for the industry. 

"To ensure the consistency of its analysis over time and across technologies, the ECB has chosen to define crypto-assets[3] as “a new type of asset recorded in digital form and enabled by the use of cryptography that is not and does not represent a financial claim on, or a liability of, any identifiable entity.”

Notably, the ECB mentioned that the risks from crypto-assets could have spillover effects on the financial stability and real economy; however, at this point such risks are contained.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

ETH defends crucial support, bull run to new record high seems intact

Ethereum tumbled in tandem with Bitcoin on Thursdays and the wee hours of Friday morning. Bitcoin brushed shoulders with $30,000 before resuming the uptrend.

More Ethereum News

XRP bears eye December low on downside break of short-term triangle

XRP/USD bounces off 0.2400 threshold to currently around 0.2550 during early Friday. Even so, the altcoin stays near the lowest since January 06 while keeping the recent downside break of a symmetrical triangle established since January 10.

More Ripple News

This on-chain metric suggests Bitcoin price correction is unstoppable

Bitcoin is trading sub $30,000 after a hurricane-like gust of wind swept across the cryptocurrency market. The flagship digital assets had been rejected at $38,000, giving way to losses that took a pit stop at $34,000.

More Cryptocurrencies News

Curve Dao price managed to weather the storm while the rest of the cryptocurrency market plummets

Curve Dao Token, a $340 million altcoin, edged above other cryptocurrencies to post double-digit gains despite widespread corrections. CRV/USD is up 14% and trading at $1.78. 

More Cryptocurrencies News


Bitcoin Weekly Forecast: BTC price faces extreme volatility ahead of a new all-time high

Bitcoin had a wild run this week, dropping from a high of $41,350 to a low of 30,420 in less than 48 hours. 

Read the weekly forecast