Reports said that economists at the Bank of International Settlements (BIS) have recommended three policies regulators worldwide could adopt in order to deal with the risks posed by cryptocurrencies.
It has been reported that economists Matteo Aquilina, Jon Frost, and Andreas Schrimpf, outlined “three potential lines of action.” The first is to “ban specific crypto activities.” Another option is to “isolate crypto from tradfi [traditional finance] and the real economy.” The third is to “regulate the sector in a manner akin to tradfi.”
However, the report clarifies that the three options are not mutually exclusive and could be “selectively combined to mitigate the risks emanating from crypto activities.”
They advised:
“Authorities can now consider a variety of policy approaches and at the same time work to improve the existing monetary system in the public interest.”
They cautioned:
“There is no assurance that they will not do so in the future, as defi (decentralized finance) and tradfi become more intertwined.”
Thus, the BIS report concluded:
“Authorities can now consider a variety of policy approaches and at the same time work to improve the existing monetary system in the public interest.”
Source: Bitcoin.com