Financial Stability Board Still Weighing Digital Currency Risks

The Financial Stability Board said in a recent annual report that it continues to assess opportunities and risks related to digital currencies.

Jul 27, 2016 at 8:31 p.m. UTC
Updated Sep 11, 2021 at 12:23 p.m. UTC

The Financial Stability Board (FSB), an international body composed of central bank officials and finance regulators, said in its latest annual report that it continues to assess opportunities and risks related to digital currencies.

, published earlier this week, indicated that the FSB’s work is largely in line with previous statements from the organization. In March, the group said that it was actively discussing the technology and its impact on the financial system.

The report states:

"The FSB's continued work in this area will consider both the risks and opportunities presented by the developments in financial technology, 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 FSB disclosed its work in the area earlier this year, when Reserve Bank of India deputy governor Subhash Sheoratan Mundra offered details during a speech given in February.

Currently chairng the FSB is Mark Carney, governor of the Bank of England and former governor of the Bank of Canada. Carney recently detailed the central bank's work on blockchain technology in statements released earlier this month.

The FSB was formed in 2009 by the international organization G-20 in the wake of the financial crisis.

Image via Shutterstock

DISCLOSURE

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.