The Central Bank of Paraguay (BCP) released a new statement on Wednesday (November 16), aiming to warn about investments in cryptocurrencies and the use of centralized platforms for trading digital assets.
According to the president of BCP, this statement serves to urge the country’s citizens and companies to avoid possible financial “damage” when investing in digital assets.
This BCP statement comes a few days after the total collapse of FTX, which triggered a new crisis in the cryptocurrency ecosystem and a new debate on digital asset regulations.
“At a global level, these exchanges are not sufficiently regulated or supervised as to the types of assets they can hold”, explained BCP.
The Central Bank of Paraguay and its own CBDC
BCP announced in December 2021 the creation of its own CBDC, considering the great popularity of cryptocurrencies and the growth in adoption of this technology today.
These centralized assets have been adopted in recent years as an option by central banks to “combat” the regulatory problems of cryptocurrencies in many countries.
For BCP, the main motivation for implementing its own payment method is the “absence” of the risks associated with cryptocurrencies, which are highly volatile and pose a danger to the finances of companies and investors.