According to The Financial Stability Board, the growing appetite of large institutions and VC firms for cryptocurrency exposure could prove counterproductive not only for said financial giants but for the entire world.
The watchdog called for exercising greater control over operations that involve significant money investments to avoid a potential financial crisis on a global scale.
The Global Financial Stability Could Be At Risk
In a report published on Wednesday, February 16, 2021, the FSB explained that essential precautions should be taken to ensure the stability of the international financial system in the face of the risks of massive investments in fast-growing technologies with little guarantee of long-term success, such as cryptocurrencies.
“If financial institutions continue to become more involved in crypto-asset markets, this could affect their balance sheets and liquidity in unexpected ways… If the current trajectory of growth in scale and interconnectedness of crypto-a
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