Crypto market warning from ecb recalling that the price of bitcoin fell by about 75 percent in a year, european central bank president christine lagarde said, “systemic risk can easily arise due to the increasing connection between the cryptocurrency ecosystem and the traditional financial system.
explaining that a series of strong shocks such as the covid-19 epidemic, the russia-ukraine war and the energy crisis hit the global economy one after another, lagarde said that this unstable environment poses great risks to financial stability in europe.
Lagarde stated that these risks are exacerbated by the weakening economic outlook, and that the monetary policy is adjusted to ensure that inflation returns to 2 percent in the medium term crypto market warning from ecb.
Stating that resilience is the key in helping the financial system meet its goal of supporting the real economy, lagarde said, “therefore, it is crucial to ensure the continued resilience of our financial system and to support it where it is lacking. Macroprudential policy must be ready for new challenges and adapt to change as needed.” she commented.
Emphasizing that cryptocurrencies are highly volatile and pose significant risks to consumers, lagarde stated that policymakers should think carefully about how the crypto crypto market warning from ecb asset ecosystem should be regulated.
Recalling that the price of bitcoin, the largest cryptocurrency with blockchain technology, dropped almost 75 percent in a year, lagarde said, “systemic risk can easily arise from the growing links between the crypto ecosystem and the traditional financial system.” warned.