A study by the European Economic Committee (ECON) was published on July 20. The document deals with competition problems in the fintech sector. According to experts, digital currencies of central banks may become a “cure” for the crypto market. Cointelegraph writes about it.
Analysts are not complaining about Bitcoin and anonymous cryptocurrencies. As it turns out, they are “the main cause of instability and danger for the entire sector.”
The introduction of allowed cryptocurrencies promoted by banks will completely change the rules of struggle in the crypto market. Conventional coins will have more strong competitors.
Researchers singled out tokens on private blockchains as a separate category. According to them, they are more stable because they are based on bilateral regulation with central authorities. At the same time, the introduction of coins issued by banks will change the competition in the market.
Right now, there is no healthy competition among cryptocurrencies. Bank-issued digital currencies could serve as a “cure-all” for the entire market.
The competition itself can be divided into two types – between cryptocurrencies and between services (wallets, exchangers and so on). Experts believe that there is a big barrier for new startups to enter the market. This situation could lead to “the creation of cartels within the industry.”
Recall that in mid-July, a new directive came into force in the EU that should reduce the number of fraud and money laundering. Last month, the EU believed that crypto could bring stability to the traditional financial system.