BTC jumped by around $1,000 following a letter by Financial Stability Board (FSB) Chair Mark Carney to the G20 being released.
In the letter to G20 Finance Ministers and Central Bank Governors he commented that the FSB has undertaken a review of the financial stability risks posed by the rapid growth of crypto-assets.
“The FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time. This is in part because they are small relative to the financial system,” he said.
According to Carney, even at their recent peak, their combined global market value was less than 1% of global GDP.
“Their small size, and the fact that they are not substitutes for currency and with very
limited use for real economy and financial transactions has meant the linkages to the rest of the
financial system are limited,” Carney noticed.
This position will be sustainable only as long as the crypto market won’t be widely used and until the regulated financial system appears. The market itself is developing very rapidly.
“Crypto-assets raise a host of issues around consumer and investor protection, as well as their use
to shield illicit activity and for money laundering and terrorist financing. At the same time, the
technologies underlying them have the potential to improve the efficiency and inclusiveness of
both the financial system and the economy,” concluded Mark Carney.
Earlier Carney voiced the need for regulating rather than banning cryptocurrencies, even when he thought that Bitcoin failed as a currency.