US Federal Reserve report highlights that crypto is no longer among the top ten most-cited potential risks.
Some of the most pressing financial risks include US-China tensions, the Russia-Ukraine war, greater energy prices and rising inflation.
And the crypto ecosystem as financial hazards, a survey conducted by the Federal Reserve Bank of New York — one of the 12 federal reserve banks in the United States — discovered 11 factors that will outweigh crypto in terms of risk in 2022.
According to a central bank survey published by the Federal Reserve System, geopolitical tensions, foreign divestments, COVID-19, and rising energy costs were among the most-cited potential risks for the US economy.
Crypto is ranked 11th out of 14 financial risk indicators, indicating a shift in investor attitude as a result of crypto entrepreneurs' ongoing efforts to educate the masses.
Some of the most significant risk concerns expressed by respondents were related to global economic power struggles, such as US-China tensions, the Russia-Ukraine war, higher energy prices, rising inflation, and cyberattacks, to name a few.
However, when it comes to assessing the risks of crypto investing, the US central bank retains its anti-crypto stance. The report stated that certain cryptocurrencies, such as BTC and Ether, Binance Coin, Cardano, and XRP are all dropped roughly 69 percent in value from their top in November 2021.
“Speculation and risk appetite appear to be the key driving elements behind recent price movements in crypto assets.”
The central bank also mentioned the Terra (LUNA) ecosystem collapse. The bank said that firms with direct exposure to the in-house stable TerraUSD (UST) found themselves in financial trouble, sometimes leading to bankruptcy.
On the other side of the world, India debuted its own central bank digital currency (CBDC) for the wholesale market.
While the government remains opposed to the concept of mainstreaming cryptocurrencies, nine local traditional banks participated in the pilot project, including the SBI, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank, and HSBC.
As per reports, India's central bank, the Reserve Bank of India (RBI), intends to launch the digital rupee in certain regions within a month.
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