Digital assets are not dangerous to the global economic system, announced Financial Stability Board chairman Mark Carney. He explained that crypto markets are still too small in their influence and size to be a cause for concern. This statement comes from FSB just as the G20 summit is about to begin, causing the markets to react rather positively.
Just yesterday G20 finance ministers received a letter from FSB head. This letter contained a review of possible dangers that cryptocurrencies might pose to the global economy. The verdict was clear: there are none. Chairman Mark Carney emphasized that even at their peak digital assets were worth less than 1% 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.”
Carney has a rather careful attitude to cryptocurrencies. He understands that there’s illegal side to crypto, and activities such as money laundering and illicit trade do happen. However, he still believes that blockchain technology in many different implementations could “improve the efficiency and inclusiveness of both the financial system and the economy”.
Carney underscored the global nature of the cryptocurrency market and called for “international cooperation” in creating cryptocurrency regulation. In his opinion, it’s more important to carefully examine existing rules, than to mindlessly create new ones.
The comments made by FSB head appeared to have some positive effect on the market, which has been falling for quite some time since news of new government regulations from China and South Korea.