The Banking Executive Magazine - May 2022 Issue

IN SHORT: • The role of Cryptocurrencies in fi- nancial portfolios is still in the first stages of evolving, meanwhile there are interests for investors in cryptos to increase and diversify their wealth. Cryptos is a highly speculative assets, with high volatility, and with correlation that is not reliable of risk eventually their prices could fall to zero. • The current Cryptocurrencies, in- cluding Bitcoin, are not suitable as currencies and unlikely to be used as a medium of exchange. • Private sector known as stablecoin are a less risky Cryptocurrencies, although they provide less security than commercial bank deposits and they are likely to be subject of ongoing regulatory examination. • Despite the limitations of Cryp- tocurrencies, central bank digital currencies are likely to be achiev- able and introduced in the coming years, if done correctly, without significant financial disruption. • Recent regulations to Cryptocur- rencies serve to highlight that the asset class is still in its infancy and is subject to significant uncertain- ties. Cryptocurrencies and Blockchain technology are becoming an impor- the BANKING EXECUTIVE 34 ISSUE 161 MAY 2022 CRYPTOCURRENCIES AND BLOCKCHAIN TECHNOLOGY: BOOM, BUBBLE OR REVOLUTION?