WebsCrypto
  • News
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFTs
  • Markets
  • Business
  • Opinions
  • Press Releases
Facebook X (Twitter) LinkedIn Telegram
WebsCryptoWebsCrypto
  • News
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFTs
  • Markets
  • Business
  • Opinions
  • Press Releases
Bitcoin (BTC) $27,005.24 0.28%Ethereum (ETH) $1,674.28 0.27%BNB (BNB) $214.94 0.27%XRP (XRP) $0.515336 0.39%Cardano (ADA) $0.254703 1.66%Solana (SOL) $21.31 4.71%Dogecoin (DOGE) $0.062023 0.21%Polkadot (DOT) $4.11 0.88%Shiba Inu (SHIB) $0.000007 0.00%Dai (DAI) $1.00 0.02%TRON (TRX) $0.088619 0.26%Polygon (MATIC) $0.535113 1.59%Avalanche (AVAX) $9.27 1.23%Uniswap (UNI) $4.47 1.56%Litecoin (LTC) $66.12 0.82%
Crypto Prices
WebsCrypto
News

Hong Kong Monetary Authority: Volatility of Stablecoins May Spread to Traditional Finance

By Simon LawsonNovember 23, 20221 Min Read
Hong Kong Monetary Authority: Volatility of Stablecoins May Spread to Traditional Finance
Share
Facebook Twitter Telegram LinkedIn Reddit Email

The Hong Kong Monetary Authority released a research report titled “Assessing Volatility Spillover from Cryptocurrencies to Traditional Financial Assets: The Role of Asset-Backed Stablecoins.”

Asset-backed stablecoins play a key role in the crypto ecosystem as they provide stable value backed by traditional financial assets, the report said. However, these stablecoins have similar liquidity mismatch risks to money market funds, which could expose them to fire sales of reserve assets when the crypto ecosystem is unstable, thereby increasing the volatility of these reserve assets.

Advertisements

In extreme cases, the failure of stablecoins or other cryptoassets could lead to mass redemptions of asset-backed stablecoins and fire sales of their reserve assets, with potentially significant repercussions for traditional financial systems.

As the crypto ecosystem continues to expand and become more exposed to the financial sector, the link between cryptocurrencies and traditional financial assets may become stronger, potentially increasing the risk spillovers discussed above, the report said.

No related posts.

Importantly, the crypto ecosystem remains largely outside the reach of regulators, with large data gaps hindering their assessment of spillover risks.

DISCLAIMER: The information provided by WebsCrypto does not represent any investment suggestion. The articles published on this site only represent personal opinions and have nothing to do with the official position of WebsCrypto.
Altcoin SEC Stablecoin
Simon Lawson
  • X (Twitter)

Simon Lawson has been a professional financial reporter for 6 years. He has in-depth research on the crypto industry and will release major crypto news in a timely manner.

Recommended Reading

Markets September 30, 2023

Bitcoin Faces Volatility Amidst Global Economic Uncertainties

News September 30, 2023

Bitcoin Optimism Rising in Developing World Despite Price Declines

Business September 30, 2023

CoinShares Optimistic About US Cryptocurrency Landscape Amidst Global Regulatory Uncertainties

Business September 28, 2023

Chase UK Takes a Firm Stance Against Cryptocurrency Transactions Amid Rising Scams

News September 28, 2023

Inflationary Market Bitcoin and Ethereum Remain Steady as Correlation with U.S. Stocks Rises

Markets September 28, 2023

Bitcoin Soars 80% This Year, Outpacing Global Stocks Amid U.S. Banking Crisis and Diminishing Binance Concerns

The Latest
Markets September 30, 2023

Bitcoin Faces Volatility Amidst Global Economic Uncertainties

News September 30, 2023

Bitcoin Optimism Rising in Developing World Despite Price Declines

Business September 30, 2023

CoinShares Optimistic About US Cryptocurrency Landscape Amidst Global Regulatory Uncertainties

Business September 28, 2023

Chase UK Takes a Firm Stance Against Cryptocurrency Transactions Amid Rising Scams

News September 28, 2023

Inflationary Market Bitcoin and Ethereum Remain Steady as Correlation with U.S. Stocks Rises

EDITOR’S CHOICE
Vitalik Buterin’s Recent Ethereum Transfers Raise Eyebrows in the Crypto Community
Chase UK Takes a Firm Stance Against Cryptocurrency Transactions Amid Rising Scams
Bonds Surge in Appeal as Bitcoin and S&P 500 Navigate Third Quarter Downturn
Robert Kiyosaki: Cryptocurrency is the Future, Fiat Money is on the Decline
News
  • News
  • Bitcoin
  • Ethereum
  • Altcoins
  • NFTs
  • Markets
  • Business
  • Markets
Information
  • Opinions
  • Guides
  • Press Release
  • Sponsored
Price Indexes
  • Market Cap
  • Bitcoin Price
  • Ethereum Price
  • Cardano Price
  • Solana Price
  • Polkadot Price
  • Polygon Price
Services
  • About Us
  • Contact Us
  • Advertise
  • Privacy Policy
  • Terms of Service
WebsCrypto
X (Twitter) Facebook Telegram LinkedIn RSS
© 2023 WebsCrypto

Type above and press Enter to search. Press Esc to cancel.