Circuit Breakers Could Be Coming to Crypto–But Will they Be Effective?

As the bones of the economic structures that our societies rely on have been laid bare, the fragility of the global economic ecosystem has been revealed. This is particularly true for novel markets that don’t have ‘circuit breakers’ and other protections in place that many traditional markets do: in particular, cryptocurrency.

The Most Diverse Audience to Date at FMLS 2020 – Where Finance Meets Innovation

Indeed, perhaps more than in most traditional markets–or at least, in unique ways–the economic fallout from the coronavirus has dealt a number of blows to crypto: at times, prices cliff-dived; the trading frenzy that ensued revealed vulnerabilities in the trading infrastructure that crypto holders rely on.

Of course, the economic havoc that the coronavirus wreaked was certainly not unique to crypto: when financial markets began to react to the coronavirus, cryptocurrency prices were (at times) less volatile than, for example, oil prices.

Still, the chaos that the…