🚨BIS#WARNS : CRYPTO REACHES “CRITICAL MASS”
The Bank for International Settlements (BIS) says crypto and DeFi now pose real financial stability risks as they gain traction in traditional finance (TradFi).
🔹Spot Bitcoin ETFs approved by US SEC in Jan 2024
🔹Real World Asset (RWA) tokenization expanding
Stability Concerns:
🔹Wealth transfer: Poor buy, rich exit in crises
🔹TradFi exposure via ETFs, DEXs & smart contracts
🔹Risks to payments, settlements, and emerging markets
BIS Recommendation: Adopt a “contain” approach—regulate DeFi like TradFi:
🔹KYC compliance
🔹Protocol operator roles
🔹Risk safeguards for banks & asset managers
Next Steps: More research into DAOs, RWA systemic risk, and stablecoin fragility