The Bank for International Settlements (BIS), in partnership with the Consultative Group of Directors of Financial Stability (CGDFS), unveiled a detailed report on August 22, named “Financial stability risks from crypto assets in emerging market economies.” This research, spearheaded by BIS-affiliated central banks from nations such as Argentina, Brazil, Canada, Chile, Colombia, Mexico, Peru, and the United States, explores the possible repercussions of cryptoassets on the financial stability of emerging market economies (EMEs).
The report underscores the rapid evolution of digital finance and the swift growth of cryptoassets. While these assets have been promoted as low-cost payment solutions and alternatives for accessing the financial system, especially in countries with high inflation or exchange rate volatility, they have also “amplified financial risks” in less developed economies. The study specifically points out the…
