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Bank of Italy economist sends out warning on Ethereum's role in financial system The study suggests that Ethereum's role in financial systems makes its token economics a concern for regulators, who may need to consider safeguards for its use in regulated finance.
Bank of Italy research highlights the potential effect of a collapse in ether's price on Ethereum's ability to function as a financial settlement infrastructure. Economist Claudia Biancotti argues that a significant drop in ETH value could lead validators to shut down, weakening Ethereum's security and reliability. The study suggests that Ethereum's role in financial systems makes its token economics a concern for regulators, who may need to consider safeguards for its use in regulated finance.
A collapse in the price of ether ETH $3,157.20 would damage the Ethereum ecosystem's ability to function as a settlement infrastructure for financial activity, a Bank of Italy economist found.
That would hurt the payment
Either way, the paper signals a shift in tone. Ethereum’s token economics are no longer viewed as an internal crypto concern, but a factor with potential implications for financial infrastructure stability. $BTC {spot}(BTCUSDT) $BNB {spot}(BNBUSDT) $SOL {spot}(SOLUSDT)
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