S&P Global Ratings Cryptocurrency Report highlights that the regulation in the cryptocurrency market will play a crucial role in regards to the success of the digital currencies. What else did S&P researchers conclude?
20 February, AtoZForex – S&P Global Ratings has released a report outlining the specifics of the cryptocurrency market operations in the modern times. The report “The Future Of Banking: Cryptocurrencies Will Need Some Rules To Change The Game” talks about the possible outcomes for the global financial markets in the context of cryptocurrency impact.
S&P Global Ratings Cryptocurrency Report highlights
The S&P Global Ratings financial services senior director, Mohamed Damak, does not see any link between the traditional and cryptocurrency market movements. This is despite the almost simultaneous drop in both the stock and cryptocurrency markets in early February.
The online reports have been quoting Mr. Damak as stating:
“For now, a meaningful drop in cryptocurrencies’ market value would be just a ripple across the financial services industry, still too small to disturb stability or affect the creditworthiness of banks we rate.”
As per the S&P Global Ratings’ report, in case of cryptocurrency market crash, retail investors would feel more influence in comparison to the banks. The report reads:
“We expect rated banks to be largely insulated, given that their direct or indirect exposure to cryptocurrencies appears to remain limited.”
Blockchain to bring “positive” disruptions
Reportedly, Mr. Damak has also stated that the regulation in the cryptocurrency market will play a crucial role in regards to the success of the digital currencies. He has stated:
“We believe that the future success of cryptocurrencies will largely depend on the coordinated approach of global regulators and policymakers to regulate and enhance market participants’ confidence in these instruments.”
Moreover, S&P Global Ratings Cryptocurrency Report highlights that Blockchain technology could possibly lead to a “positive” disruption of the global financial markets. In the meantime, some of the large enterprises are already signaling the green light for this innovative technology. Just recently, Chinese PC company Lenovo has filed a patent for a Blockchain-based document verification system.
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