The European Central Bank has carried out an analysis of the cryptocurrency phenomenon in the market striving to clarify whether it can pose a threat to the stability of the financial system as well as smooth operations in the market. The report called "Understanding the crypto-asset phenomenon, its risks and measurement issues" was released on August 7.
The experts noted that there is a need for revision, update and expansion of the practices and instruments for monitoring cryptocurrency transactions via cooperation among central banks.
The Bank believes that a serious gap in the crypto data causes one of the main problems for virtual currency monitoring.
Moreover, transactions are recorded randomly despite blockchain transparency, which in fact affect the assessment of the crypto market state.
The crypto market reportedly can impact the stability of the financial system, so it is essential to keep proceeding with the development of the statistical classification of crypto assets and requirements to such assets.
"The financial system may be subject to risks from crypto-assets to the extent that both are interconnected; spillover effects may also be transmitted to the real economy," states the document.
Earlier, the European Central Bank already released the report in which it believed that digital assets could affect the financial system only once they officially became substitutes to deposits and monetary funds.