Crypto assets do not pose risk, says FSB study

PARIS, Mar 19 (AFP): Virtual currencies and so-called crypto assets do not, yet, pose a systemic risk, the body which makes recommendations about the financial system said in a study released Sunday.

"The FSB's initial assessment is that crypto-assets do not pose risks to global financial stability at this time," said the Financial Stability Board.

"The market continues to evolve rapidly, however, and this initial assessment could change if crypto-assets (notably digital currencies) were to become significantly more widely used or interconnected with the core of the regulated financial system."

Last year saw the meteoric rise of hundreds of virtual currencies led by bitcoin, which late last year was fetching almost $20,000 per unit before a slump to around $8,000 currently.

Financial concerns revolve primarily around those computer-generated assets' long-time association with so-called 'dark web' transactions for illegal goods and services including drugs and weapons.

"The FSB has undertaken a review of the financial stability risks posed by the rapid growth of crypto-assets," said the report published ahead of a meeting of G20 finance ministers and central bank governors in Buenos Aires starting Monday.