Currently, the cryptocurrency market is facing a crisis. Digital currencies are hitting their all-time lows, their capitalization is falling, and investors are panicking. Moreover, experts highlight a new danger adding fuel to the fire.
According to CEO of UK digital bank Starling Anne Boden, cryptocurrencies pose a serious threat to traditional payment systems. "A lot of [crypto] wallets are being connected directly to payment schemes. This is a threat to the safety of our payment schemes around the world," Boden said. Government financial regulators, who are concerned about the financial system becoming more entwined with highly volatile crypto assets, share her view. Recently, Bitcoin was about to reach the $100,000 mark. However, now it can collapse below the important psychological level of $20,000 per coin.
Earlier, Assistant Director for Financial Supervision and Regulation at the International Monetary Fund (IMF) Marina Moretti warned against banning cryptocurrencies. She believes that global standards and cross-sectoral organization as well as international cooperation with other countries to collect and exchange data on crypto transactions should become top priorities in regulation of the cryptocurrency market at various levels.
