Cryptocurrencies resumed their slide on Monday, quitting their gains over the weekend, as regulators continued to circulate. European officials are repeating warnings about the risks posed by cryptocurrencies. sliding side. shares due to concerns about higher inflation and rising interest rates.The world’s largest cryptocurrency has lost about one-fifth of its value so far this month, as TerraUSD’s dramatic collapse, called stablecoin, has hit the crypto markets already in the midst of a wide range of risky investments.
TerraUSD’s dramatic collapse
TerraUSD, which broke its $ 1: 1 dollar last week and is currently trading at around 14 cents, according to the coingecko site, has attracted special attention to stablecoins and the important role they play in the crypto system. Some of that attention comes from financial regulators.The Governor of the Bank of France Francois Villeroy de Galhau told a conference on Monday that crypto assets could disrupt the international financial system if they are not regulated and co-operated in a consistent and efficient manner in all areas. He pointed to stablecoins that he said were not properly named, as were some of the sources of risk.
Speaking separately, Fabio Panetta, a member of the central board of the European Central Bank, also on Monday said stablecoins are at risk of running. Tether, the world’s largest stablecoin, briefly lost its 1: 1 peg on May 12, before recovering. Unlike TerraUSD, Tether is backed by traditional archives, according to its operating company.
On the same day, bitcoin dropped to $ 25,400, its lowest level since December 2020, but returned to $ 31,400 on Sunday. Ether, the second-largest cryptocurrency, fell 5.6% to about $ 2,000 on Monday. Administrators in other areas are also present. worried. The US Federal Reserve warned last week that stablecoins are at risk of rushing investors because they are backed by assets that could lose value or become illiquid in times of market turmoil.
READ ALSO : Former Australian striker Symonds has died in a car accident
