Regulating cryptocurrencies

17 JAN,2021 | MEDC


 

Even though perilous for the average investor, there is no doubt that cryptocurrency is a financial innovation that is here to stay. Cryptocurrencies present a plethora of risks, some of them unique to such products. Most crypto-assets are not backed by tangible securities, and thus there is an issue in accurately valuing them. This enhances the risk of market manipulation. Additionally, asymmetries of information and negotiation power creates the need to protect consumers and investors. In March 2019 the Basel Committee on Banking Supervision released a statement on crypto-assets saying that their growth could threaten financial stability. With our economy on a V-shaped recovery path, we cannot afford to have any financial destabilization at this juncture. India’s financial infrastructure is still not sophisticated enough to afford the legalization of cryptocurrencies. Policymakers need to monitor them carefully to minimize their chaotic potential. What cannot be cured, must be endured … and regulated.

*Photo Credit: Google

Comments



Featured Posts



Recent Posts


EMERGING ISSUES IN AEROSPACE INDUSTRY: AN INDIAN PERSPECTIVE


Tourism and its contribution to the Economy


Interactive Meeting with Mr. Jaykumar Rawal Hon'ble Minister for Tourism & Employment Guarantee Scheme Govt. of Maharashtra


De-coding skills-based pro-bono


FOOD PRICE VOLATILITY


Food Inflation in India: An Assessment




Archive




© Copyright 2019 MEDC, All rights reserved
Website Design and Develop By: SCI Knowledge Interlinks