BIS: Cryptocurrencies Pose Risks to Emerging Economies
According to a newly released report from the Bank for International Settlements (BIS), digital asset market vulnerabilities may pose risks to financial stability in emerging market economies.
This is due to certain liquidity, credit, operational and capital risks associated with such assets.
The report recommended that local regulators consider selective bans, containment and regulation of specific crypto assets in order to address these risks.
The BIS also warned of the potential for digital assets to be viewed as a “safe haven” from the volatility of national currencies, yet noted that cryptocurrencies are an incorrect way of tokenization.
Additionally, the IMF previously recognized that a ban on digital assets is not the best way to reduce the risks they pose.
