FSB Thinks Cryptocurrencies Don’t Pose Any Risk Yet

The body made financial recommendations on Sunday and said, that virtual currencies and crypto-assets don’t pose a systemic risk yet. The Financial Stability Board said in a statement:

“The FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time. The market continues to evolve rapidly, however, and this initial assessment could change if crypto-assets (notably digital currencies) were to become significantly more widely used or interconnected with the core of the regulated financial system.”

Last year, there was a big rise of digital currencies led by Bitcoin, which was testing almost $20,000 mark before dropping to $8,000.

The FSB thinks, that financial stability risks” could arise and hit market confidence without material improvements in conduct, market integrity and cyber resilience.

The governor of the Bank of England said, that the current backdrop of strong and balanced global growth is underpinned by a resilient global financial system that is the product of determined efforts by the G20 and FSB over the past decade.

But it stressed the need to “regularly scan the horizon to identify and assess emerging risks”, including the rise of largely unregulated and often volatile crypto assets, which it said required enhanced monitoring.

The FSB was based in Switzerland. It was created after a collapse of US financial services firm Lehman Brothers to reinforce the financial system.

At the behest notably of France and Germany, how to deal with crypto will be on the agenda in Buenos Aires as opinions in top economies range from much tougher regulation to a hands-off approach.

The post FSB Thinks Cryptocurrencies Don’t Pose Any Risk Yet appeared first on Bitcoin News.

from Bitcoin News https://www.cryptocynews.com/fsb-thinks-cryptocurrencies-dont-pose-risk-yet/
via Bitcoin News
via Bitcoin News Today