All That Glitters is Not Gold: UN Business Slams Crypto Adoption

Cryptocurrencies and stablecoins are unsteady financial benefit that could cause additional problems to appear economies, the UNCTAD claimed.

The United Nations Congress on Trade and Development (UNCTAD) believes the impact of cryptocurrencies should be limited in developing nations. According to the business, digital assets are unsteady financial products that could cause further issues to already exhausted economies.

Amid the global financial crisis, numerous residents of emerging countries chose to change their depreciating fiat currencies into stablecoins. However, the UNCTAD warned that such symbol also pose risks and individuals should avoid them.

  • Multiple surveys have approximate that cryptocurrencies are more frequent in countries where the local population battles high inflation, financial crisis, or even military dispute. In one of its recent announcements, the UNCTAD assert that digital asset assumption is the highest in war-torn Ukraine.
  • The agency continued that investing in bitcoin or altcoins could be the wrong master plan, especially for citizens of emerging economies. This is because of the infamous volatility of the asset class.

“If cryptocurrencies become a general means of payment and even replace domestic currencies irregular (a process called cryptoization), this could endanger the monetary sovereignty of countries,” the UNCTAD said.

  • It is safe to say that crypto has captivated attention toward itself in the past few years (especially during the bull run in 2021).
  • Ironically, the United Nations business argued that “all that glitters is not gold,” alerting banker to stay away from such appealing but likely dangerous assets.
  • Subsequently, the company said stablecoins pose the same risks, and investors should be utterly cautious when dealing with them.

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