Financial Stability Board told G-20 in a letter that cryptocurrencies do not pose any threat to global financial systems at least for now. This is because their combining market value is less than 1 percent of the global GDP.
The Financial Stability Board, which a global regulation watchdog for G-20 economies, said in a letter to G-20 members on Sunday that cryptocurrencies do not pose risks to global financial stability at this time.
The letter was written by FSB chairman Mark Carney in response to the calls by some countries to crack down on digital currencies. Bitcoin, which was in the $7,000 levels on Sunday, went as high as $8,702 on Monday, 4:20 p.m. ET. The positive announcement is an important helping because bad news affected Bitcoin prices in the last few months. For instance, Bitcoin dropped $700 less after the announcement that Twitter will reportedly ban advertising for ICOs, token sales and cryptocurrency wallets globally.
Google and Facebook announced restrictions on advertising, which affected prices further. Facebook implemented the ban already but Google ban starts on June.
Bart Stephens, co-founder and managing partner at Blockchain Capital said,
“The Twitter, Google and Facebook news isn’t much of a market mover in our opinion”.
Carney may have responded to what was supposedly a huge hype on use of cryptocurrencies for illegal activity in the recent past. He said the combined global market value for cryptocurrencies was less than 1 percent of the global GDP.
G-20 meeting begun Monday in Buenos Aires, Argentina. U.S. Treasury Secretary Steven Mnuchin and other leaders indicated their intention to tackle cryptocurrency regulation issue in the summit. A spokesperson told CNBC that discussions on cryptocurrencies will take place in a closed-door session on Tuesday. Discussions on the assets may also surface at a subsequent press conference.
Carney, who is also governor of the Bank of England, said in the letter to G-20. However, FSB will look for metrics and gaps in data to help monitor growth of crypto-assets. It will then identify emerging threats to financial stability. By November, they will publish an assessment of post-crisis regulations on the use of clearinghouses. However in the use of clearinghouses in the global swaps market. They will consider whether there are any unintending consequences in relation to costs and availability of clearing.
Both companies assume very different approaches in making processors and CPU and GPU cards. Nvidia’s GPUs, though more expensive, are very popular with cryptocurrency miners. Practically for the benefits they deliver in terms of profits.