{"id":13082,"date":"2021-10-12T00:54:09","date_gmt":"2021-10-12T00:54:09","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/bank-of-england-crypto-assets-pose-limited-risks-to-stability-of-uk-financial-system\/"},"modified":"2021-10-12T00:54:09","modified_gmt":"2021-10-12T00:54:09","slug":"bank-of-england-crypto-assets-pose-limited-risks-to-stability-of-uk-financial-system","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/bank-of-england-crypto-assets-pose-limited-risks-to-stability-of-uk-financial-system\/","title":{"rendered":"Bank of England: Crypto Assets Pose \u2018Limited\u2019 Risks to Stability of UK Financial System"},"content":{"rendered":"

The Bank of England says that crypto assets pose \u201climited\u201d direct risks to the stability of the country\u2019s financial system. \u201cCryptoasset and associated markets and services continue to grow and to develop rapidly. Such assets are becoming increasingly integrated into the financial system,\u201d the U.K.\u2019s central bank described.<\/strong><\/p>\n

Crypto Poses Limited Risks to UK\u2019s Financial Stability<\/h2>\n

The Bank of England\u2019s Financial Policy Committee (FPC) published the October edition of the \u201cFinancial Stability in Focus\u201d report Friday.<\/p>\n

The Financial Policy Committee has 13 members, six of whom are Bank of England staff, including the governor and four deputy governors. The FPC \u201cidentifies, monitors and takes action to remove or reduce systemic risks with a view to protecting and enhancing the resilience of the U.K. financial system,\u201d the central bank described.<\/p>\n

The committee wrote:<\/p>\n

Cryptoasset and associated markets and services continue to grow and to develop rapidly. Such assets are becoming increasingly integrated into the financial system. The FPC judges that direct risks to the stability of the UK financial system from cryptoassets are currently limited.<\/p>\n

\u201cHowever, regulatory and law enforcement frameworks, both domestically and at a global level, need to keep pace with developments in these fast-growing markets in order to manage risks and to maintain broader trust and integrity in the financial system,\u201d the committee added.<\/p>\n

The committee further noted that it \u201cwill continue to pay close attention to developments, including the relationship between cryptoassets and the U.K. financial system, and thereby seek to ensure resilience to systemic risks that may arise from further developments in cryptoasset markets,\u201d concluding:<\/p>\n

The FPC considers that financial institutions should take a cautious and prudent approach to any adoption of these assets.<\/p>\n

Early this month, the International Monetary Fund (IMF) warned<\/a> that the rising popularity of cryptocurrencies posed new challenges to financial stability, stating that it could \u201creduce the ability of central banks to effectively implement monetary policy\u201d and \u201ccreate financial stability risks.\u201d<\/p>\n

In July, Bank of England Deputy Governor Jon Cunliffe said that cryptocurrencies were not big enough<\/a> to pose financial stability risk. \u201cThey\u2019re not of the size that they would cause financial stability risk, and they\u2019re not connected deeply into the standing financial system,\u201d said the deputy governor.<\/p>\n

What do you think about the Bank of England\u2019s comments about crypto assets? Let us know in the comments section below.<\/strong><\/em><\/p>\n

Bitcoin News
\nRegulation, Bank of England, bank of england crypto, crypto assets, Financial Policy Committee, financial stability, risks to financial stability, uk financial system<\/p>\n","protected":false},"excerpt":{"rendered":"

The Bank of England says that crypto assets pose \u201climited\u201d direct risks to the stability of the country\u2019s financial system. \u201cCryptoasset and associated markets and services continue to grow and to develop rapidly. Such assets are becoming increasingly integrated into the financial system,\u201d the U.K.\u2019s central bank described. Crypto Poses Limited Risks to UK\u2019s Financial…<\/p>\n","protected":false},"author":0,"featured_media":13083,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-13082","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/13082"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=13082"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/13082\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/13083"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=13082"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=13082"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=13082"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}