An international forum on financial regulation say virtual currencies such as bitcoin do not pose a threat to global stability but require “vigilant monitoring” as the market is changing rapidly.
The Financial Stability Board added that that the highly volatile currencies raise concerns about consumer and investor protection and that data on banks’ exposures to them remains scarce.
The board on Monday outlined its efforts to grasp the possible impact of virtual currencies on the global banking system. That includes tracking the size of the sector to understand how widespread losses by investors could affect other activities.
The board’s report was submitted to the finance ministers and central bank heads of the Group of 20 most advanced economies. The officials meet in Buenos Aires, Argentina, July 21-22.