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The U.S. Financial Stability Board reports that Bitcoin is not enough to threaten the financial system



The U.S. Financial Stability Regulatory Commission (FSOC), the chief financial regulator in the United States, claims that Bitcoin and other cryptocurrencies do not pose a threat to the existing financial systems around the world. In its 152-page report, the FSOC states that only a handful of consumers use virtual currency and the blockchain technology behind it offers the potential for the implementation of various industrial applications.

"Only a handful of consumers are using virtual currency, and we trust more about the potentially broader use of so-called distributed ledger technology as a foundation for innovation." It's worth noting that this wave of digitization is having an impact on regulators Is also a challenge because the storage of data is decentralized rather than a centralized point that the government can oversee. "

Other highlights of the report 

From the point of view of digital currency, although the position of the head of several financial industries has shown a negative stance, the position of this report has been a little bit of a surprise. For example, JP Morgan Chase CEO Jamie Dimon recently claimed that bitcoin is a "fraud" and should not be taken seriously.

The report also cites the various financial threats, geopolitical risks and cyber security threats facing the global financial system. But Bitcoin is not considered a threat.


Digital currency market

In 2016, the virtual currency market witnessed a substantial increase. However, despite its rapid growth, the total market value is still well below $ 1 trillion and may be too small to be a systemic threat to the global financial industry. At the same time, the potential of cryptocurrencies is unlimited.