Crypto nears systemic risk ‘tipping point’
Cryptocurrency could be nearing a point where it poses a system risk to the world’s financial system, the outgoing chair of the Financial Stability Board has warned.
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In a speech in Spain, Klaas Knot noted that – despite bankruptcies, liquidity crises and fraud in the sector – the FSB has long maintained that crypto does not yet pose a system risk.
However, he warns that recent developments such as the erosion of barriers to retail take-up and growing interlinkages with the traditional financial system “suggest we may be approaching a tipping point”.
Klaus notes that stablecoin issuers now hold…
