Cryptos Don’t Pose Risks to Global Financial Stability

The Financial Stability Board (FSB), an international body that monitors the global financial system to promote stability and coordinates financial regulation for G20 nations has dismissed calls from some G20 members to regulate cryptocurrencies like bitcoin. In a letter [PPDF] sent to G20 finance ministers and central bank governors on the eve of this year’s G20 summit in Argentina, FSB chairman Mark Carney has stressed that cryptocurrencies do not represent a threat to the global financial system, following a review by the authority.

Carney, who also serves as Bank of England governor, revealed the FSB had undertaken a review of financial stability risks posed by cryptocurrencies’ “rapid growth” in response to concerns by G20 members.

The FSB review determined that, for now, the relatively small usage of cryptocurrencies as fiat money substitutes and the “very limited use for real economy and financial transactions” means limited links to the wider financial system for cryptocurrencies.

Reference: https://www.ccn.com/cryptos-dont-pose-risks-to-global-financial-stability-fsbs-carney-tells-g20/

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