Financial Stability Board Weighs Distributed Ledger Risks

The Financial Stability Board reviewed distributed ledger technology as part of a meeting to set its 2016 priorities this week.

Mar 31, 2016 at 1:10 p.m. UTC

Updated Sep 11, 2021 at 12:12 p.m. UTC

The Financial Stability Board (FSB), an international body aimed at improving the global financial system, reviewed distributed ledger technology as part of a meeting to set its 2016 priorities this week in Tokyo.

The FSB said it proposed a framework for categorizing financial technologies, including distributed ledgers, and assessing their impact on global financial stability. The topic was reviewed along other, broader priorities for the organization, which included promoting a more robust financial infrastructure and addressing new vulnerabilities in the financial system.

The official release noted:

"Plenary members discussed the issues raised for public authorities by these technologies, possible steps to address potential risks and opportunities for cooperation in the FSB and with the standard-setting bodies to deepen analysis and develop regulatory perspectives."

The statements follow indications from the group that it would seek to better understand the technology alongside its mandate of helping to mitigate another global financial crisis.

Notably, the FSB is chaired by Mark Carney, governor of the Bank of England, whose agency has been vocal on the subject of blockchain and distributed ledgers.

The UK central bank announced in January it intends to explore applications of blockchain and distributed ledger technology, potentially for its own use.

Conference table image via Shutterstock

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.