Central Banks Keep Eye on Crypto-Currencies

The G20 Financial Stability Board, an international body that monitors and makes recommendations about the global financial system says it is concerned about the spread of operations with the bitcoin and other crypto-currencies

Global regulators in a report released ahead of their meeting in Buenos Aires on 21-22 July said they would “vigilantly monitor” crypto-asset markets as part of its ongoing assessment of vulnerabilities in the financial system with a special focus on the transmission channels from crypto-asset markets.

The FSB says it does not believe that crypto-assets at this time pose a material risk to global financial stability, the broad public interest in crypto-currencies and the jumps in their rates prompted the heads of central banks of the world’s largest economies to warn investors against the dangers of significant financial losses. 

The regulators stated a particular concern about the fact that some players started using the so-called ICO (initial coin offering), the sale of new crypto-currency packages to investors.
The FSB, which coordinates the policies of the G-20 states, in a letter to G20 finance ministers and central bank governors in March published rules and criteria for monitoring crypto-currencies. The purpose of the document is to promptly react, if the crypto-currencies begin to pose a threat to global financial stability.

It is not yet known whether it is possible to use existing financial rules to regulate this sector of economy.




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