In a letter to G20 Finance Ministers and Central Bank Governors, Mark Carney, as Chair of the Financial Stability Board (FSB), addressed the rapid growth of crypto-assets. He indicated that, while crypto-assets did not yet pose risks to global financial stability due to their relatively small size compared to the overall financial system, the FSB was vigilant about potential risks. Specifically, Carney noted that crypto-assets constituted less than 1% of global GDP, which was small compared to other pre-crisis financial products.
Carney also highlighted the possibility of evolving risks as crypto-assets gained wider adoption or became more integrated with the traditional financial system. He mentioned that increased use without improvements in market integrity, consumer protection, and cyber resilience could lead to financial stability concerns. Therefore, the FSB planned to monitor crypto-assets closely by identifying key metrics and addressing data gaps, in coordination with international organizations such as the IMF and the Financial Action Task Force (FATF).
Additionally, Carney acknowledged both the consumer protection issues linked to crypto-assets and their potential to improve financial system efficiency. He underscored the importance of international coordination in managing crypto-asset risks, given the global nature of these markets.