{"id":16578,"date":"2023-01-18T03:01:55","date_gmt":"2023-01-18T03:01:55","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/bis-economists-recommend-3-crypto-policies-for-regulators-worldwide-to-adopt-regulation-bitcoin-news\/"},"modified":"2023-01-18T03:01:55","modified_gmt":"2023-01-18T03:01:55","slug":"bis-economists-recommend-3-crypto-policies-for-regulators-worldwide-to-adopt-regulation-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/bis-economists-recommend-3-crypto-policies-for-regulators-worldwide-to-adopt-regulation-bitcoin-news\/","title":{"rendered":"BIS Economists Recommend 3 Crypto Policies for Regulators Worldwide to Adopt \u2013 Regulation Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Economists at the Bank of International Settlements (BIS) have recommended three policies regulators worldwide could adopt in order to deal with the risks posed by cryptocurrencies. \u201cAuthorities can now consider a variety of policy approaches and at the same time work to improve the existing monetary system in the public interest,\u201d they advised.<\/strong><\/p>\n

BIS Economists Discuss Crypto Policies<\/h2>\n

The Bank of International Settlements (BIS) published a bulletin last week titled \u201cAddressing the risks in crypto: laying out the options.\u201d<\/p>\n

Authored by BIS economists Matteo Aquilina, Jon Frost, and Andreas Schrimpf, the report discusses the risks associated with cryptocurrencies and the various options available to regulators and central banks for addressing these risks.<\/p>\n

The authors outlined \u201cthree potential lines of action.\u201d The first is to \u201cban specific crypto activities.\u201d Another option is to \u201cisolate crypto from tradfi [traditional finance] and the real economy.\u201d The third is to \u201cregulate the sector in a manner akin to tradfi.\u201d However, the report clarifies that the three options are not mutually exclusive and could be \u201cselectively combined to mitigate the risks emanating from crypto activities.\u201d<\/p>\n

\"BIS<\/a><\/p>\n

While noting that crypto markets \u201chave experienced a remarkable series of booms and busts, often resulting in large losses for investors,\u201d the BIS economists concluded that \u201cthese failures have so far not spilled over to the traditional financial system or the real economy.\u201d Nonetheless, they cautioned:<\/p>\n

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There is no assurance that they will not do so in the future, as defi (decentralized finance) and tradfi become more intertwined.<\/p>\n<\/blockquote>\n

\u201cAuthorities can now consider a variety of policy approaches and at the same time work to improve the existing monetary system in the public interest,\u201d the BIS report concludes.<\/p>\n

What do you think about the BIS economists\u2019 crypto-policy recommendations? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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