FSB: Crypto Doesn’t Threaten Current Financial Stability
Digital currencies may not threaten financial stability worldwide as previously believed, according to the Financial Stability Board (FSB) in a statement Wednesday.
Their report arrives after research by the organization was conducted for the last few months into what consequences digital assets can have on the financial sector globally.
In their press release, the firm presented their views regarding crypto as a legitimate means for payment or stored value, and that they believe it does not qualify as such.
The statement emphasized that crypto faces problems with decreased liquidity, high risk markets due to volatility and other issues. However, they also detailed their opinion that the assets do not actually pose a risk on stability in the financial world for the time being.
They maintain that digital currencies need to be monitored since the market is adopting the currency at a rapid pace, and if it continues to evolve, implications on its stability need to be considered later on.
According to the report, there are various risks that may arise from digital currencies being used as payment. Although the FSB encourages monitoring, they also feel that it’s difficult due to the lack of information regarding the entirety of the impact that digital assets may have.
Crypto can affect aspects other than stability, stated the report, including issues in policy, consumer protection, integrity of the market, criminal activity, and much more.
Even though these topics are crucial to society, they are not in the scope of the FSB and are best left to international and local authorities.