Geopolitical tensions, foreign divestment, COVID-19 and high energy prices were found to be some of the most cited potential risks to the US economy, according to a central bank survey published by the System of the Federal Reserve.

Federal Reserve Bank of New York survey results. Source: Federal Reserve System
Out of 14 factors that pose financial risk, cryptocurrencies are ranked 11th, revealing a change in investor mindset due to continued efforts by crypto entrepreneurs to educate the masses.

Some of the pressing risk concerns raised by respondents related to the power struggle of global economies, including US-China tensions, the Russia-Ukraine war, higher energy prices, rising inflation, the COVID-19 pandemic, and cyber-attacks, to name a few.

However, the US central is maintaining his anti-crypto stance when it comes to assessing the risks in crypto investing. He noted in the report that selected cryptocurrencies, including BTC, Ether

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, Cardano

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and XRP

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– are down 69 percent in value compared to the November 2021 peak, adding that:

“Speculation and risk appetite appear to be the main driving forces behind crypto asset prices, which have seen large swings in recent years.”
The central bank also cited the collapse of the Terra ecosystem, noting that entities that had direct exposure to the in-house TerraUSD (UST) stablecoin found themselves in financial difficulties, sometimes leading to bankruptcy.

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On the other side of the world, India launched its homegrown central bank digital currency (CBDC) for the wholesale segment.

While the country is still opposed to the idea of incorporating cryptocurrencies, the pilot project saw the participation of nine local traditional banks, including State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank , Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC.

Related reports suggested that India’s central bank, the Reserve Bank of India (RBI), plans to launch the digital rupee for the retail segment within a month in selected locations.