Financial Stability Board Chair: Cryptocurrencies Could Challenge Any Kind Of Framework
Financial Stability Board’s Chair: Cryptocurrencies Could Challenge Any Kind Of Framework
In his inaugural speech, which was made at the weekend in Hong Kong, Randal K. Quarles, the new chair of the Financial Stability Board (FSB) has affirmed that cryptocurrencies and crypto-assets could bring major problems for regulatory agencies. According to him, the agency is currently reviewing the frameworks in order to asses all the kinds of vulnerabilities that these assets can bring.
Quarles is also the vice chair of the U. S. Federal Reserve Board of Governors and he affirmed that cryptos could challenge the frameworks which are currently being used and even the stability of the financial ecosystem.
According to him, given the fact that cryptos are currently evolving and they do it fast, it can be difficult to plan a complete and well-rounded framework for them, however, it is important to review them in order to improve the ability of the agency to recommend better measures for the G20 nations.
It is exactly because a robust framework is so hard to do that it is so important, he believes, as other organizations will also have a hard time doing it. At the moment, however, he was not very clear on how this framework will actually happen and what it will define. The review will be undertaken by a committee which will be headed by Klass Knot, which is the president of the Dutch National Bank.
The Responsibility Of The Financial Stability Board
The FSB was created in 2009 because of the financial crisis. Its main goal is to offer vulnerability reports to the G20 nations in order to determine which is the best course of action to keep the economy leveled.
Before Quarles, the position that he is currently in belonged to Mark Carney, the governor of the Bank of England.