An international group, composed of representatives of Central banks and Ministers of member countries, said Sunday that cryptocurrencies have no risk for global financial stability. This statement was made on the eve of negotiations on this issue within the framework of the G20 summit.
In a letter published on March 18, Chairman of the financial stability Board (FSB) and the President of the Bank of England Governor mark Carney (Mark Carney) said that the organization does not see the technology as a threat – at least at this stage. He wrote:
«The FSB believes that cryptocurrency assets in real time do not pose a threat to global financial stability, partly because they are insignificant compared to the financial system. Even at the peak of growth the total market capitalization of crypto-currencies was less than 1% of global GDP,» — said Carney. «For comparison, just before the global financial crisis in 2008, notional value of credit default swaps was equal to 100% of global GDP. Small size of the cryptocurrency market and the fact that cryptocurrencies are not substitutes for currency, as well as their limited use in the context of real economy and financial transactions mean that their relationship with the financial system is limited.»
Although this observation was more consistent with previous comments
Carney about the weak impact of cryptocurrency on the global financial system, the letter leaves room for discussion in this area, which could start at the G20 meetings this week.
As Carney acknowledges in the letter, the number of large countries — France, Japan and the USA in particular — called for a United response to speculation in the cryptocurrency industry. It was also reported that the official representatives of Japan expressed interest in joining international efforts to combat money laundering. However, yesterday, it was decided that a uniform international regulation of critobulus now not necessary.
Indeed, some of those calls to action, also support the position of the Carney. At the G20 summit US Treasury Secretary Steve Mnuchin, which advocated an international approach to regulation, said that does not see the cryptocurrency a threat to financial stability.