The Basel Committee on Banking Supervision (BCBS) published on Thursday a discussion paper on the treatment of crypto and digital assets.
Central Banks Expected to Share their View on Crypto
The BCBS, an international body that has central banks as stakeholders, wants a global standard to approach cryptocurrencies and blockchain-based assets. The committee published a paper and expects the reaction of central banks by March 2020.
The BCBS admitted that the size of the crypto market is meaningful to be monitored by central banks. However, the committee, which is related to the Bank for International Settlements (BIS), said that the market was still small in comparison to the global financial system.
The expansion of the crypto market might lead to increased risks for central banks around the world. The emerging cryptocurrency space raises concerns about financial stability. The BCBS cited issues like high volatility of crypto-assets, fraud, money laundering, and terrorist financing, among others.
Nevertheless, if commercial banks…