FSB wants more data to measure risks of Bitcoin, stablecoins, DeFi
Crypto market data reporting needs global standards to enable proper risk assessment, the FSB declared. The Financial Stability Board (FSB), a global financial authority funded by the Bank for International Settlements, has released a new report on the financial stability risks associated with cryptocurrencies.Published on Wednesday, the 30-page study details a number of financial risks related to various types of cryptocurrencies as well as the industry sectors, including private digital assets like Bitcoin (BTC), stablecoins like Tether (USDT) and decentralized finance (DeFi).The report....
Related News
A new report by the European Central Bank (ECB), presented as a “deep dive into crypto financial risks,” calls for “appropriate” regulation and oversight of stablecoins and decentralized finance (defi). It also addresses the hot topic of Bitcoin’s carbon footprint in Europe, suggesting a ban on proof-of-work mining is probable. Growth of Stablecoins, Defi Warrants Regulation and Supervision, ECB Says Crypto-related financial risks, those associated with stablecoins and defi platforms in particular, as well as the threat to climate transition goals blamed....
A combination of centralization and decentralization is a perfect mix for the development of crypto and DeFi, according to a Swiss National Bank official. Central bank digital currencies (CBDCs) can work well with decentralized finance (DeFi), and they have a lot of potential to boost DeFi adoption, according to a Swiss central bank official.Among many various types of digital currencies, it is CBDC that could provide more stability and lower risks to the development of DeFi, according to Thomas Moser, a governing board member at the Swiss National Bank (SNB).In order to grow, DeFi needs....
The transparency measure is meant to provide additional certainty for decentralized finance (DeFi) traders who often rely on asset-backed stablecoins.
DeFi Pulse and Gauntlet have released a new tool to improve users’ risk awareness of major DeFi projects. Decentralized finance (DeFi) analytics platform DeFi Pulse has launched new safety ratings in alpha to enable users to compare the risks of on-chain protocols. However, the ratings system is still in development and does not factor in all risks, such as smart contract risks. In partnership with digital asset modeling platform Gauntlet, the grading tool looks at key factors including user behaviour, collateral volatility, relative collateral liquidity, protocol parameters, and smart....
In recent years, stablecoins have become wildly popular throughout the crypto universe due to their inherent feature that safeguards investors from the volatility of the crypto market. They are used for various use cases and exist across different blockchain platforms. Until recently, stablecoins, decentralized finance (DeFi), non-fungible tokens (NFTs), and other similar smart contract-powered primitives weren’t available on the Bitcoin network. However, with the emergence of RSK, the first smart contract platform secured by the Bitcoin network, Bitcoin die-hards can now access the....