And done carefully, the development of regulatory regimes helps not hinders innovation by reducing the risks of confidence-destroying crashes and by giving innovators a framework within which to innovate. Regulators need to begin extending existing standards and regulatory regimes to crypto before not after it is becomes systemically important. We have seen in other areas the disruptive power of digital technologies and the difficulties of retrofitting regulation once new models have achieved systemic scale. There are well established concerns around consumer protection and financial integrity, which need to be addressed, and there is a need to think now about systemic consequences. Nonetheless this is a corner of the financial system that has been growing very quickly and that has begun to develop greater interconnection with the conventional financial system. The regulatory community’s assessment that crypto assets and platforms carried major risks but did not yet pose risks to the broader financial system footnote was borne out both by the collapse in crypto values and of some coins we saw earlier this year and by the lack of wider knock-on impacts. This focus has in my view been entirely appropriate. Not surprisingly, given their explosive growth and wholly unregulated markets, much of the focus has been on crypto assets, particularly the highly speculative, assets like Bitcoin and the so called ‘stablecoins’ that function as the settlement asset for much of crypto trading and settlement. No meeting of the international regulatory or central banking community takes place without a discussion of some aspect of the financial products, services and technologies that have been developed in the ‘crypto’ world. In recent years, regulators and central banks have become increasingly focussed on ‘crypto’. News and publications Open News and publications sub menu.Option-implied probability density functions Gross Domestic Product Real-Time Database The PRA’s statutory powers and enforcement Money Markets Committee and UK Money Markets Code Greening our Corporate Bond Purchase Scheme (CBPS) Operational resilience of the financial sector Wholesale cash distribution in the futureįinancial market infrastructure supervision
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