Declining risk appetite in cryptocurrencies does not prevent the adoption of regulations from the European Central.
The decline in the digital currency market during the last period
and the losses it caused too many investors,
all of these factors led to the reluctance of some traders
and investors from the cryptocurrency market.
Despite this, the regulatory authorities are still seeking to implement regulations,
and this came according to the statements of a member of the European Central Yesterday,
Tuesday, he said that the so-called “cryptocurrency winter” is not considered the reason
for the decline or slowdown in work according to regulations.
Europe was a pioneer in its regulatory decision on investing in the crypto market.
Still, the side of other major countries was very lenient about moving forward
with the development of the cryptocurrency market. Regulatory laws
topic’s
Sharp declines in crypto assets
UK bond yields jump nearly 5% for the first time in 20 years.
Sharp declines in crypto assets
In the current year 2022, encrypted assets declined,
and this decline came in light of the tight monetary policy by
central banks in order to confront the frightening inflation,
Europe did not retreat from seeking to implement and finalize it,
but there are some regulations that cannot be discussed at the present
time with Big declines in the cryptocurrency market
Digital payments
Earlier, Christine Lagarde, President of the European Central,
while speaking before the committee chaired by Villeroy,
said that there is a clear desire for digital money and that
we must strive to meet this demand regarding digital payments
in order to try to maintain the pivotal role that we work on it now
The European Central Bank begins issuing its first digital currency
and is trying to work with private sector companies
to develop a prototype for the digital euro.
Thus, the European Central Bank is the first among
the world’s largest economies to seek this step,
and the French Central Bank aims to start the first 3 new experiences
with regard to wholesale central bank funds,
as well as bonds based on the same “Bitcoin”
technology, which is the “Blockchain”.
Jerome Powell pushes US regulators for the price of issuing
laws governing the cryptocurrency market
As part of the regulatory campaign launched by
the President of the European Central Bank,
Federal Reserve Chairman Jerome Powell stressed the need for Congress to take
quick steps toward establishing regulatory laws for the digital currency market.
The current financial system, and made it clear
that despite the large fluctuations that occur in digital assets,
some people want this, and that this is not fully compatible
with the regulatory objectives of the central bank.
UK bond yields jump nearly 5% for the first time in 20 years.
As investors wait for the large amounts of bonds
to be offered amid a massive interest rate hike,
the UK’s long-term borrowing costs have risen by nearly 5%,
for the first time in nearly two decades.
It occurred after the continuous wave of decline,
where it also recorded a 30-year return, which rose to 5.01%,
equivalent to 47 basis points, which is the highest percentage since 2002.
During the day, the markets also suffered from new collapses,
which caused the erasure of all the gains that were previously achieved,
at a time when the government pledged to try to
move forward towards reaching financial stimulus,
which requires a lot of political response, and this, in turn,
was reflected in the interest rate expectations that indicate Currently,
it has increased by four percentage points in May,
and thus the main interest rate recorded in Britain is 6.25%,
which is the highest rate increase since 2001.
More concerns for the government
come due to the high rate of borrowing costs,
which causes policymakers to be exposed to great pressure
from market fears or high risk in the face of more turmoil,
as the selling operations allowed to eliminate
the dues to all bondholders in billions,
and led to demand Investors until they obtain greater returns to keep the country’s debt,
as economists indicated that the crisis is currently a crisis of confidence
about government borrowing and not the pound sterling,
which witnessed very large declines during the last period,
but today it is settling at 1.0711 levels to recover temporarily
with the calmness of the dollar American.
The large widening and the difference currently occurring between 5-year
and 30-year bond yields to its highest level
since 1997 due to strong selling operations,
and this reflects the extent of investor concern
regarding monetary policy, which may remain very loose.
Declining risk appetite in cryptocurrencies does not prevent