The new chair of the Financial Securities Board (FSB) believes cryptocurrencies could prove a major hurdle for the agency as it looks to review the current framework for assessing global financial vulnerability, Coin Desk reports
During his inauguration speech in Hong Kong, Randal K. Quarles explained that the FSB will begin reviewing its framework to ensure its “at the cutting edge of financial stability vulnerability assessment.” He added that developing a well-rounded framework might be difficult given the rising prominence of cryptocurrencies, stating:
“This will not be easy – developments like the emergence of crypto-assets may challenge any framework – but that makes the goal of a robust framework all the more important.”
The framework is designed to improve the FSB’s ability to recommend better financial stability policies for G20 nations. While there were no details given regarding the scale of the framework, the FSB released a proposed framework in July last year to monitor the risks of cryptocurrency by looking at price volatility, the growth of ICOs and the use of cryptocurrencies in global payments.