This year the demise of crypto titans revived concerns about cryptocurrency security and the implications on fiat ecosystems. According to a situational analysis by the Hong Kong Monetary Authority (HKMA), the instability of crypto assets, especially asset-backed stablecoin, may have an impact on the traditional finance system. Impact on Traditional Finance According to the HKMA evaluation of asset-backed stablecoins, there is a possibility that their stability will be significantly impacted by liquidity mismatches during fire-sale occurrences. The central bank of Hong Kong claims that because cryptocurrency assets are interconnected, the ecosystem is now more susceptible to large-scale disruptions. Additionally, the The post Hong Kong Concerns Stablecoin Volatility Impact on Traditional Finance appeared first on Cryptoknowmics-Crypto News and Media Platform .
