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The new chairman of the Financial Stability Board (FSB) believes that the emergence of cryptographic badets could constitute a major hurdle for the agency, which plans to review its current frameworks for badessing the global financial vulnerability.
In his inaugural speech in Hong Kong on February 10, Randal K. Quarles, also vice-president in charge of oversight at the Board of Governors of the US Federal Reserve, said the FSB would begin reviewing its framework in order to 39, ensure the badessment of the vulnerability of financial stability. "
Quarles added that if such a review process was to improve the agency's ability to recommend better financial stability policies for the G20 countries, it may be difficult to put in place a comprehensive framework, given the evolution of new technologies such as cryptocurrency.
He said:
"It will not be easy – developments such as the emergence of crypto-badets can challenge any framework – but this makes the goal of a robust framework all the more important." "
The FSB was created in 2009 in the aftermath of the global financial crisis to provide an badessment of the G20's financial vulnerability. On November 28, Quarles was appointed chairman of the board after being replaced by Mark Carney, governor of the Bank of England.
Quarles did not specify the scope of this framework review process, but it is interesting to note that the FSB had already proposed a framework last July specifically to "vigilantly" monitor the risks of cryptocurrency with metrics that take into account price volatility, growth in credit offers and the use of crypto in global payments.
The review will be undertaken by a committee of the CSF headed by its vice president, Klaas Knot, who is also chairman of the National Bank of the Netherlands, the central bank of the Netherlands.
Image of Quarles, courtesy of the US Federal Reserve.
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