European Central Bank makes a brand new announcement Macroprudential evaluate It attracts an image of European issues about cryptocurrencies. This doc touches on subjects such because the position of Stablecoin, the environmental dangers of proof of labor consensus, and the world of ​​decentralized finance.

Cryptographic ecological issues

Currently, European Union state officers are going through selections related to the scenario within the automotive sector. PoS consensusAre assigned the position of cryptographic model of the electrical automobile or are focusing on limiting or banning PoW in contrast to conventional autos.

The analogy is actually related. PoW crypto property By encouraging the transition of electrical autos, we have now already eradicated emission reductions and world internet financial savings in most nations.

Therefore, a “no action” method by authorities officers is feasible, however unlikely. However, political motion by the authorities is a extra viable possibility, whether or not it’s a disclosure requirement, a carbon tax on crypto transactions or possession, or an entire ban on the mining trade.


DeFi dilemma

The DeFi phase of the cryptocurrency market Special consideration from the ECB, Questioned its true decentralization. Taking Uniswap’s holding construction for example, regulators have discovered that a lot of the token choices are within the palms of a small variety of individuals, and the truth that the DeFi protocol requires human involvement is the truth that all holders, He mentioned it could lead on to DAO and DeFi. A regulated mission workforce.

“For example, 80% of the total supply of Uniswap’s governance token UNI distribution is held by teams, early investors, and token holders with a balance of over 1 million UNI. In addition, total token holders. 1% of addresses hold about 97% of total token supply. ”

— Patrick Hansen (@paddi_hansen) July 12, 2022

Safety and sustainability of Stablecoins

Stablecoin has not been missed both. Regulatory authorities DeFi sector has evolvedOriginally regarded as a parking zone for cryptocurrency liquidity, Stablecoin is changing into an increasing number of refined in its utilization and format, leading to an entire lack of stability hints. According to the ECB, the idea of “stability” itself has been turned the wrong way up, and although there isn’t a collateral, even algorithmic stablecoins are thought of secure.

At the tip of the manifest evaluate, the regulatory company Sudden Regulation of the Stablecoin phase to keep away from repeating the Terra and UST circumstances, and all the crypto market on the whole.


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