The current outgoing chair of the Financial Stability Board (FSB), Klaas Knot, has issued a strong warning about the cryptocurrency market. He emphasized that this sector may be approaching a 'tipping point,' posing systemic risk to global finance. This is a prominent warning in the context of cryptocurrency increasingly becoming an integral part of traditional financial flows.
Klaas Knot noted that stablecoin issuers currently hold a large amount of U.S. Treasury bonds. This increases the level of interconnectedness between the cryptocurrency economy and the traditional banking system, creating potential systemic risk blocks if sudden volatility or devaluation occurs.
The threshold for retail investors to access the cryptocurrency market has significantly decreased, especially after major cryptocurrency ETFs were officially launched. Continuous inflows from large financial institutions and individuals have driven deeper connections between DeFi and traditional asset markets.
Knot emphasized the importance of proactive oversight, reiterating that the cryptocurrency ecosystem will continue to evolve. This requires a legal framework to be continuously improved to manage risks and prevent shocks that could cause a domino effect on the global financial system.
In conclusion, to control potential hazards from cryptocurrency, FSB leaders call on regulators to proactively monitor and update response measures in sync with the increasing complexity of this market. Innovation and control must go hand in hand to protect global financial stability.
Source: https://tintucbitcoin.com/tien-ma-hoa-doi-mat-rui-ro-he-thong/
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