Central Banks and government officials around the world are beginning to develop acceptance for crypto and are saying that these digital assets are for real and not a FAD. Along with the rise in the popularity of cryptocurrencies, a rise in the belief in CBDCs and doubts and fears regarding the fluctuations in the prices of these digital assets are being witnessed. Australian Government Officials Won’t Stand in the way of Crypto, Believe it is not a FAD Jane Hume, the Senator, and Minister of Financial Services released a statement on Thursday addressing the fact that the cryptocurrency is not just a passing FAD, it is here to stay and will see significant growth in the near future. She said: “Cryptocurrency is not a fad. It is an asset class that will grow in importance. We have to let people make their own decisions.” In addition to this, the Senator addressed the rising number of platforms such as Tiktok, FB, Instagram, and Reddit, that is providing investment advice to the investors. She said: “We have to back Australians to be sensible enough to judge for themselves whether to put their hard-earned money into higher-risk assets.” Well, Australia is not the only country that is showing acceptance for cryptocurrencies, Russia is also in the line of trusting crypto. However, they have already specified that their trust is always going to be more on the Central Bank Digital Currencies (CBDCs). Dmitry Medvedev, the former Russian Prime Minister, and President, and the incumbent deputy chief of the Security Council of Russia suggested that it is high time to recognize the value and importance of crypto assets and CBDCs. He declared: “We must not allow global standards of conduct […] to become an instrument of international economic totalitarianism. All actors, state and non-system, must be involved in the development of these approaches.” Central Banks of Canada and Norway Tensed About the Vulnerabilities and Rising Fluctuations Following the Crash The Bank of Canada addressed the issue with the fluctuations in the market that will prove to be a vulnerability to the financial system of the country. These are the entities that are not even in complete favor of CBDCs as they believe that if the assets are widely used, they would possess the potential to disturb the monetary policy mechanisms of the bank. The bank said: “Unless stable coins are backed exclusively by Canadian dollars, their widespread adoption could inhibit the Bank’s ability to implement monetary policy and act as lender of last resort.” The Central Bank of Norway laid emphasis on the dramatic fluctuations in the price of cryptocurrencies as the leading digital asset Bitcoin plunged over 30% following the remarks by the central bank of China. The Executive Director for Financial Stability, Torbjorn Haegeland said: “We don’t see these swings that we’ve seen yesterday as major threats to financial stability but if exposures continue to increase, that may pose a threat.”
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