{"id":36453,"date":"2021-02-15T14:34:51","date_gmt":"2021-02-15T12:34:51","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=36453"},"modified":"2025-08-29T06:25:55","modified_gmt":"2025-08-29T03:25:55","slug":"fitch-ratings-doubt-rapid-popularisation-of-cryptocurrencies","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/fitch-ratings-doubt-rapid-popularisation-of-cryptocurrencies\/","title":{"rendered":"Fitch Ratings Doubt Rapid Popularisation of Cryptocurrencies"},"content":{"rendered":"

Cryptocurrencies remain far from crossing into the mainstream, though they could modernize the financial system in the long term. This is stated in Fitch’s report<\/a>.<\/p>\n

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Analysts examined initiatives to include cryptocurrencies in the product lines of payment companies MoneyGram<\/a>, Visa<\/a>, Mastercard<\/a>, Square<\/a> and PayPal. The latter launch the purchase and sale<\/a> of bitcoin for American clients was described as the first real use case of cryptocurrencies in the United States not related to trading.<\/p>\n

The agency believes that the new direction will not affect the credit profiles of the companies and could become another source of net income.<\/p>\n

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“We expect a limited impact on the credit profile in the mid-term. This is indicated by the relatively small volume of strategic investments in cryptocurrencies and the long time required to master them. At the same time, it will create a base for additional revenues even if the return on investment over time and regulatory risks remain unclear”, the experts noted.<\/p>\n<\/blockquote>\n

In Fitch, they see potential for cryptocurrencies in increasing the speed of settlements, reducing fees, improving security and anonymity, and creating conditions for 24\/7 money transfers. In the analysts’ view, the realization of these advantages is possible with proper regulation.<\/p>\n

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“Stricter oversight could become a barrier, especially if issuers of digital currencies are required to obtain banking licenses, maintain reserves, and comply with regulations for financial institutions”, the experts explained.<\/p>\n<\/blockquote>\n

In December 2020, a group of lawmakers introduced into the U.S. Congress bill requiring<\/a> stablecoin issuers to obtain banking licenses and regulatory approval.<\/p>\n

Earlier, Germany, France, Italy, Spain and the Netherlands urged the European Commission to develop strict rules<\/a> for stablecoins.<\/p>\n

In July, the Financial Action Task Force announced the development of new rules for stablecoin issuers.<\/p>\n

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Regulation at scale: what changed for Bitcoin and cryptocurrencies in 2020<\/a><\/p>\n<\/blockquote>\n