BlockChain & Cryptos | |
BlockChain & Cryptos | |
3629 VIEWS | |
![]() |
Wednesday, October 10, 2018
04:55PM / FSB
The Financial Stability Board (FSB) today
published Crypto-asset
markets: Potential channels for future financial stability implications.
This report sets out the analysis behind the FSB’s proactive assessment of the
potential implications of crypto-assets for financial stability. The reports
follows up on the initial assessment set out in the FSB
Chair’s March 2018 letter to G20 Finance Ministers and Central Bank Governors,
and the summary
of the work of the FSB and standard-setting bodies on crypto-assets
the FSB published in July.
The report published today includes an
assessment of the primary risks present in crypto-assets and their markets,
such as low liquidity, the use of leverage, market risks from volatility, and
operational risks. Based on these features, crypto-assets lack the key
attributes of sovereign currencies and do not serve as a common means of
payment, a stable store of value, or a mainstream unit of account.
Based on the available information,
crypto-assets do not pose a material risk to global financial stability at this
time. However, vigilant monitoring is needed in light of the speed of market
developments. Should the use of crypto-assets continue to evolve, it could have
implications for financial stability in the future. Such implications may
include: confidence effects and reputational risks to financial institutions
and their regulators; risks arising from direct or indirect exposures of
financial institutions; risks arising if crypto-assets became widely used in
payments and settlement; and risks from market capitalisation and wealth
effects.
Crypto-assets also raise several broader
policy issues, such as the need for consumer and investor protection; strong
market integrity protocols; anti-money laundering and combating the financing
of terrorism (AML/CFT) regulation and supervision, including implementation of
international sanctions; regulatory measures to prevent tax evasion; the need
to avoid circumvention of capital controls; and concerns relating to the
facilitation of illegal securities offerings. These risks are the subject of
work at national and international levels and are outside the primary focus of
this report.
FSB members have to date taken a wide
variety of domestic supervisory, regulatory, and enforcement actions related to
crypto-assets. National authorities and standard-setting bodies have issued
warnings to investors about the risks from crypto-assets, as well as statements
supporting the potential of the underlying distributed ledger technology (DLT)
that they rely on to enhance the efficiency of the financial system. These
actions are balanced between preserving the benefits of innovation and
containing various risks, especially those for consumer and investor protection
and market integrity.
Related News
1. Broker Charged With Fraud And
Unlawful Distribution Of Unregistered Cryptocurrency Securities
3. Barclays Files Two Digital
Currency and Blockchain Patents with U.S. Patent Office
4. Bond Yields Compress on
Renewed Local Client Demand
5. Cryptocurrencies, Digital
Currencies, and Distributed Ledger Technologies: What Are We Learning?
6. Gemini Becomes First Currency
Exchange To Receive NY DFS Approval For Cryptocurrencies Trading
7. Cryptocurrency Derivatives to
Test Clearinghouses, Banks
8. Four Entities Demonstrate
Feasibility Of Instantaneous Equity Settlement Through DLT
9. Blockchain Co-inventor Joins
Australian Blockchain Investment Mgt Firm, First Digital Capital
10. Switzerland Wants To Be The
World Capital of Cryptocurrency, Blockchain and ICOs