Financial Stability Board Declares Bitcoin is no Threat the Global Economy but Volatility is Risky
One of the most important banking institutions around the world, the Financial Stability Board (FSB) is convinced that Bitcoin (BTC) and other digital assets do not pose risks to the world economy. The FSB is in charge of monitoring the global economy and there are more than 20 representatives from G-20 countries.
The information was released by the Reserve Bank of India (RBI), the Central Bank of the Country a few days ago. The report mentions that the FSB asserted that virtual currencies are not a threat to financial stability.
On the mater, the report reads:
“The FSB has undertaken a review of the financial stability risks posed by the rapid growth of crypto-assets. Its initial assessment is that crypto-assets do not pose risks to global financial stability currently.”
The report goes on saying that the market evolves rapidly and that the assessment could change in the future. Cryptocurrencies could become digital assets interconnected with the financial space and could make the world economy more vulnerable to wild changes in the crypto industry.
Back in October, the Financial Stability Board published another document in which they informed that digital assets were not a viable way to store value. Nevertheless, at that time, they had the same point of view regarding the world financial stability.
This institution was created after the 2008 crisis, similar to Bitcoin, that was created by Satoshi Nakamoto 10 years ago. The FSB tries to monitor the economy and the G20 members tend to recommend specific policies to improve financial stability around the world.
Back in March 2018, the Governor of the Bank of England, Mark Carney, commented about the initial assessment made by the Financial Stability Board saying that there are no risks to the global financial stability at this time.
After these comments, the G-20 financial members met in Buenos Aires in order to discuss which policies and regulations to apply to cryptocurrencies. The report presented by the G-20 recommended that countries should follow the Financial Action Task Force (FATF) recommendations about money laundering.