Crypto has a long way to go

CRYPTOASSET markets have expanded significantly over the last decade. Adoption by both households and firms has risen rapidly around the world, given the promise of financial innovation, inclusion and efficiency.

Unlike traditional financial markets, crypto markets are borderless, operate continuously across time zones, are fully digital and are designed to be decentralised. Their footprint has grown, and their market structures have evolved rapidly. The launch of exchange-traded products, along with the evolving regulatory stance in the US, has further fuelled interest, as prices resume a sharp upward trajectory.

In this context, institutional investors – including some central banks – have begun to explore the potential role of…

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