S&P international Ratings free a report Mon, Feb. 19, entitled the “The way forward for Banking: Cryptocurrencies can want Some Rules to vary the sport,” that details the doable outcomes for the worldwide monetary markets in relevancy the actions of the crypto markets.
Even though Associate in Nursing early Gregorian calendar month crash of each the normal markets and therefore the crypto markets perceived to show synchronisation, Mohamed Damak, S&P international Ratings monetary services senior director, doesn’t see this correlation as important, CNBC reports:
"For now, a important visit cryptocurrencies' market price would be simply a ripple across the monetary services business, still too little to disturb stability or have an effect on the trustworthiness of banks we have a tendency to rate.”
According to S&P’s report, retail investors, as opposition banks, would be hit the toughest within the event of a crypto crash:
"We expect rated banks to be mostly insulated, provided that their direct or indirect exposure to cryptocurrencies seems to stay restricted."
Damak additionally stressed the importance of regulation within the crypto sphere moving forward:
"We believe that the longer term success of cryptocurrencies can mostly rely on the coordinated approach of worldwide regulators and policymakers to control and enhance market participants' confidence in these instruments.”
The report noted that Blockchain technology could lead on to a “positive” disruption of the worldwide monetary markets.
Large corporations across the world area unit already starting to experiment with Blockchain -- Chinese computer company Lenovo recently filed a patent for a Blockchain-based document verification system, and therefore the initial major agricultural trade exploitation Blockchain technology was completed in January by causation a cargo of soybeans from America to China.