Cryptocurrencies pose risks to banks, warns Basel committee

posted 8 days ago
The Basel Committee on Banking Supervision, a group of international banking authorities, warns the growth of cryptocurrencies pose risks to banks and global financial stability. The committee – part of the Bank for International Settlements (BIS), widely considered the central bank of central banks said potential risks for banks include liquidity, credit and market risks, operational risk (including cyber risks), money laundering and terrorist financing risk, and legal and reputational risks.

The committee said that it is working with other global standard-setting bodies and the Financial Stability Board to arrive at guidance on “prudential treatment” of banks’ exposure to cryptocurrencies in order to “appropriately” reflect the risks.
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