The ECB has today released a report on the financial stability risks associated with crypto. It highlights that if current trends in growth and market integration persist then crypto-assets will have an impact on financial stability.
The report entitled “Decrypting financial stability risks in crypto-asset markets”, categorises the perceived threats that crypto brings to the safety of retail investors, and to the financial stability of the Euro zone as a whole.
The report does acknowledge that there has been increased demand for crypto from retail and institutional investors alike. It points out though that while the crypto market represents only 1% in size of the entire global financial system, it is still a similar size to the subprime mortgage markets that brought the …