The banking services of Italy have called for a robust risk-based framework for them. This is specifically made for stablecoins to prevent further risks and unwanted circumstances.
A continuous run on the stable coin to stabilize the situation. The top banking authorities of the country have come together and sought help. The country’s network is in jeopardy. Previously they have called for a closer security program for the coins, and they have proved to be the wrong one.
Updated market research has recently been published and called for other regulators from all over the country to apply for the same.
Crypto Consumers Have Been Affected By Unsafe Regulated Environment In Italy
The bank has published a statement regarding cryptocurrency, mentioning it has paired with other ‘boom and bust’ cycles. And pairing has caused harm to the consumer of Italy. Regular movement is required to stabilize the coins. Keeping the environment harmless is necessary as it’s all close to DeFi.
The Bank of Italy mentioned how it’s been affecting the DeFi ecosystem.
Keeping the coins on a regular rhythm is necessary to reduce their fragility.
The Bank of Italy has further notified why bringing robustness into the system is necessary. Without the system, it has been disrupting the synchronization.
More advanced DeFi can cause an increment between traditional and decentralized finances.
They further shared how the last stable coin provided to them could have been a lot better. Terra’s algorithmic stablecoin crashed last year in May.