Swiss Re sees Bitcoin and Ether as a competitor to classic currencies and warns | 06/16/22

Swiss Re sieht Bitcoin und Ether als Herausforderer klassischer Währungen und warnt

In their analysis, reinsurer experts specifically emphasized the risks associated with cryptocurrencies.

In today’s heavily tech-dependent financial system, bitcoin or ether has risen to become potential rivals to classic altcoins, according to a media release from the reinsurer in Sonar Thursday.

In addition, new types of crypto assets have emerged: for example, tokens allow a digital representation of real assets such as real estate or artwork, which can then be traded. With such crypto assets in place, the question arises as to whether they are implicitly covered by existing property or electronic insurance policies, according to Swiss Re experts.

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Finally, the security of cryptocurrencies is also being threatened by the development of “quantum computing.” This new generation of high-performance computers is about to handle tasks that far exceed the capabilities of today’s computers. They can also break the standard encryption of online communication and data transmission.

In the Sonar report, Swiss Re continues to highlight climate risks such as thawing permafrost, which currently covers about a quarter of the Northern Hemisphere. If the permafrost subsides, not only will local infrastructure be damaged and climate risks will increase. It is said that pathogens that have been frozen for decades can also be released.

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