Big Three Credit Agency Fitch Says Stablecoin Growth Could Be ‘Disruptive’ to...
American credit rating agency Fitch Ratings, one of the ‘Big Three’ credit rating agencies, has published a report that says stablecoin growth could affect securities and commercial paper (CP) markets. The agency says stablecoins could be “disruptive” and “stablecoin-related turbulence” could “transmit shocks” to other markets. Fitch Ratings: ‘Stablecoins Could Be Disruptive for CP Markets’ On Monday, the ‘Big Three’ credit agency Fitch Ratings published a report on stablecoins and the growth of....
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Fitch Ratings, the American credit agency and member of the ‘Big Three’ credit agencies, has published a paper on El Salvador’s adoption of bitcoin and making the crypto asset legal tender in the country. Fitch believes that after the country enforces the new tender law it will face “volatility risk” alongside “regulatory and operating risks” as well. Fitch Ratings Says El Salvador’s Bitcoin Adoption Invites New Risks In 21 days, El Salvador’s bitcoin tender law will be enforced after the bill to make bitcoin legal tender in the....
Fitch notes potential asset contagion risks posed by stablecoins could lead to tighter regulations for the industry. The growth of stablecoins that are not fully backed by safe assets could trigger a destabilization in short-term credit markets, rating agency Fitch has warned.In a commentary note, the agency explained that coins that are fully backed by safe assets pose a lesser risk for the financial markets. The agency gives USD Coin (USDC), which is backed by U.S. dollars on a 1:1 basis held in custody accounts, as an example for fully-backed stablecoins, but warned that the authorities....
Global credit rating agency Fitch Ratings believes bitcoin is still too small to affect traditional payment systems and national currencies. The agency's Why Forum published its findings in a report on bitcoin, dubbed 'Sizing up Bitcoin'. The report points out that bitcoin transactions in February 2014 averaged a meagre $68m per day. Despite a tenfold increase year-on-year, bitcoin's average daily transaction volume pales in comparison to Western Union and PayPal. The two payment processors averaged $225m and $492m per day in 2013. Fitch examined bitcoin's potential role in the financial....
Despite the tumble in stablecoin activity, average transactions of stablecoins DAI and UST still exceed those of USDT and USDC. Stablecoin usage lost steam amid the recent crypto market downturn. From peaking at nearly $2 billion on May 19, the daily transaction volume has fallen off its 2021 average by about 60%. The significant drop begs the question about stablecoin activity in the current market environment.Unsurprisingly, the two cryptocurrencies that remain in a tight race for stablecoin dominance are Tether (USDT) and USD Coin (USDC). However, the market holds a fine distinction....
Ratings agency Fitch released a statement on Tuesday with regard to bitcoin acceptance in the corporate playground. The agency says they have observed "great corporate acceptance" of the digital currency in its form as a payment mechanism (to which many enthusiasts would say, "duh!". The observation comes in the wake of DISH Network, Newegg, Expedia, and 1-800-FLOWERS.com announcing their adoption of the digital currency. In addition, Fitch points to the publishing of the 'Coin Pocket' app to the iOS App Store following Apple's change of heart when it comes to approving....