Powerful U.S. Regulator Sees Bitcoin as a Possible “Threat” to Financial Stability
The Financial Stability Oversight Council (FSOC), a group of U.S. regulators, warned that bitcoin and blockchain are threats to financial stability and noted they need to adapt to the changing market structure if cryptocurrency reduces the importance of traditional centralized intermediaries. The FSOC includes the Federal Reserve, the Securities and Exchange Commission and the Treasury Department. The Council is charged with identifying risks to the financial stability of the United States, promoting market discipline, and responding to emerging risks to the stability of the financial....
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The International Monetary Fund (IMF) warns that the rising popularity of cryptocurrencies poses new challenges to financial stability. “Cryptoization can reduce the ability of central banks to effectively implement monetary policy. It could also create financial stability risks.” IMF Sees New Challenges to Financial Stability From Crypto The International Monetary Fund (IMF) warned about the risks posed by the cryptocurrency boom in a blog post published Friday. The post, titled “Crypto boom poses new challenges to financial stability,” is authored by three....
An African regulator has told members of the six-nation Economic and Monetary Community of Central Africa (CEMAC) that a ban on cryptocurrencies is still effective. The regulator said the prohibition is designed to ensure financial stability is maintained within the economic bloc. COBAC to Set Up System to Identify Crypto Transactions An African regulator, the Banking Commission of Central Africa (COBAC), has reminded members of a regional economic bloc that includes the Central African Republic (CAR) that its ban on cryptocurrencies remains in effect. The regulator’s latest....
The Financial Stability Board has discussed and reviewed distributed ledger or blockchain technology in a wider meeting covering its priorities in 2016, during a discussion in Tokyo over the past two days. The Financial Stability Board (FSB), a common platform that sees the coming together of senior policy makers from central banks, ministries of finance and other supervisory and regulatory authorities from G20 nations has revealed that it has reviewed distributed ledger technologies in a meeting. Held over the last two days in Tokyo, Japan, the meeting was to review the international....
India’s central bank, the Reserve Bank of India (RBI), sees cryptocurrencies as “a clear danger.” However, the financial stability risks posed by crypto assets currently appear to be “limited.”
RBI on Crypto’s Danger and Financial Stability Risks
The Reserve Bank of India (RBI) released the 25th issue of its Financial Stability Report (FSR) Thursday. RBI Governor Shaktikanta Das wrote:
Cryptocurrencies are a clear danger. Anything that derives value based on make believe, without any underlying, is just speculation under a....
ECB President Christine Lagarde downplays any risks bitcoin and other cryptocurrencies could pose to financial stability and monetary sovereignty. In contrast, she sees stablecoins, such as Facebook-backed libra, as posing “serious risks.” Christine Lagarde, Bitcoin, and Facebook’s Libra The president of the European Central Bank (ECB), Christine Lagarde, shared her view on the future of money in an article published Monday in L’ena hors les murs magazine. She specifically discussed “bitcoin or other crypto-assets that have been trying to gain a foothold in....