A peak global regulator has warned “financial stability risks could rapidly escalate” as cryptocurrency becomes more mainstream, with possible runs on stablecoin reserves and a lack of transparency around “decentralised finance” protocols.
In an “assessment of risks to financial stability from crypto-assets”, released on Wednesday night, the Financial Stability Board highlighted multiple vulnerabilities in crypto markets and said it wants a co-ordinated regulatory response by members of the G20.
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James Eyers writes on banking, payments and fintech. He is a former legal and investment banking editor at the AFR, has degrees in commerce and law from UNSW, and is co-author of Buy now, pay later: The extraordinary story of Afterpay Connect with James on Twitter. Email James at jeyers@afr.com.au
