Crypto-assets represent limited risks for the stability of the British financial system-regulation
Crypto-assets represent limited risks for the stability of the British financial system-regulation
The Bank of England says that crypto-assets are "limited" direct risks to the stability of the country's financial system. "Cryptoasset and the associated markets and services grow and develop quickly. Such assets are increasingly being integrated into the financial system," the British central bank described.
crypto carries limited risks for the financial stability of Great Britain
The Financial Policy Committee (FPC) of the Bank of England published the October edition of the report "Financial stability in focus" on Friday.
The Committee on Financial Policy consists of 13 members, of whom six employees of the Bank of England, including the governor and four deputy governors. The FPC "identifies, monitors and takes measures to eliminate or reduce systemic risks in order to protect and strengthen the resistance of the British financial system," described the central bank.
The committee wrote:
Cryptoasset and the associated markets and services grow and develop quickly. Such assets are increasingly integrated into the financial system. The FPC judges that direct risks for the stability of the British financial system are currently limited by crypto assets.
"However, the regulatory and law enforcement framework must keep up with the developments in these rapidly growing markets both in Germany and at a global level in order to cope with risks and to keep a broader trust and to maintain broader integrity into the financial system," added the committee.
The committee also found that "the developments, including the relationship between crypto-assets and the British financial system, will continue to pay great attention and will try to ensure that the resilience towards systemic risks can result from further developments on the crypto-asset markets", and closed:
The FPC is of the opinion that financial institutions should be careful and careful when taking over these assets.
At the beginning of this month, the International Monetary Fund (IWF) warns that the increasing popularity of cryptocurrencies presents the financial stability of new challenges, since it could "reduce the ability of central banks to effectively implement monetary policy" and "create financial stability risks".
In July, the deputy governor of the Bank of England, Jon Cunliffe, said that cryptocurrencies do not represent a risk for financial stability. "They are not so great that they would be a risk of financial stability, and they are not integrated deeply into the constant financial system," said the deputy governor.
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