Mark Carney, Chairman of the Financial Stability Board (FSB), which coordinates financial regulation for the Group of 20 Economies, said in a letter to G20 central bankers and finance ministers that the organization doesn't see Bitcoin (Bitcoin) and other cryptocurrencies as a threat to the global economy, Reuters reported.
“The FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time,” Carney said ahead of a G20 meeting in Buenos Aires on Monday and Tuesday.
FSB also resisted calls from some G20 members to regulate cryptocurrencies. The watchdog said more international coordination was needed to plug data gaps in monitoring the rapidly evolving but still tiny sector worth less than 1 percent of global GDP at its peak.
At the G20 Summit that kicked off in Argentina today, the participants will discuss Bitcoin and cryptocurrencies, and their influence on the global financial stability.
A number of leading economies – France, Germany Japan and the US – have called for a joint response to the speculation around Bitcoin and other cryptocurrencies.
Bitcoin reacted bullishly to Carney’s letter. The cryptocurrency surged almost 8 percent to $8,300 on Monday, which is still over 50 percent off the $20,000 peak seen in December 2017.