[2018-03-19]Coindesk Carney On Eve of G20: Cryptos Don't Pose Risks to Financial

[dbers79]

An international group of central bank regulators and government ministers said Sunday that cryptocurrencies don't pose a risk to global financial stability, comments that come on the eve of talks on the subject by the G-20.

In a letter published on March 18, Financial Stability Board chairman Mark Carney, who also leads the Bank of England, said that the organization doesn't see the tech as a threat - at least at this juncture.

Carney wrote:

"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."

"Even at their recent peak, their (cryptocurrencies) combined global market value was less than 1% of global GDP," he continued. "In comparison, just prior to the global financial crisis (in 2008), the notional value of credit default swaps was 100% 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."

While the note is mostly in line with Carney's previous comments on the limited impact of cryptocurrencies on the global financial system, the letter offers a window into where the discussions around this area may head to at the G20 meeting this week. As previously reported, government officials will meet Monday and Tuesday in part to talk cryptocurrencies, an agenda item that has been deemed "important" in a bid to reach a "common response" to regulation.

As acknowledged in Carney's letter, a number of major countries - France, Japan and the U.S. among them - have called for a unified response to speculation around cryptocurrencies. Most recently, Japanese officials reportedly expressed interest in joint efforts around money laundering.

Indeed, some of those calling for action seem to share Carney's assessment as well. As previously reported, U.S. Treasury Secretary Steve Mnuchin - who supports an international approach to regulation - has said in the past that he doesn't view cryptocurrencies as a threat to financial stability.

https://www.coindesk.com/financial-stability-board-downplays-crypto-impact-on-global-finance/

[1715492031]

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[1715492031]

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[Terraformer]

England and Japan governments are quite tolerate for crypto, it can be said with a great deal of confidence Russia will support them. France and Germany, which constitute financial and tax engine of European Union, will be fighting to the last.

[Guardian.P]

Global financial stability destroys itself. I can suppose that Satoshi Nakamoto offered to the world the financial technology of blokchain . But what do we see now ? Thousands of other cryptocurrencies of analogues, great number from what simply not needed, Crypto garbage. Personally do you need use thousand tokens for your needs? When people will be determined that they are really useful from crypto the world, all will go away in digital gold of BTC, and useful analogues. Is not there motion - who is it necessary?

[bambazamba]

Its a relief to be honest . Even if its shocking to know that not even 1% contribution in the GDP and revenue is contributed by crypto currency , its a relief that this will not let England ban or regulate crypto currency in their country . England has world domination and any such crucial steps would've affected bitcoin's status of "legality" in other countries too . I don't know why it seems that its better for the crypto currencies to work behind the curtains to save themselves from getting totally excluded.