FSB Chairman: Cryptocurrencies are approaching a tipping point in financial system integration

PANews June 13 news, according to Bitcoin.com, Klaas Knot, Chairman of the Financial Stability Board (FSB), said in a speech at the Bank of Spain meeting that the deep integration of cryptocurrencies and the traditional financial system is approaching a critical point. Knot pointed out that with the launch of cryptocurrency ETFs and the large amount of US debt held by stablecoin issuers, the threshold for retail investors to participate has been significantly lowered, and systemic risks are accumulating at an accelerated rate. He warned that in the context of insufficient innovation in the cross-border payment field, rapid innovation without effective supervision may amplify risk transmission. Knot emphasized that given the cross-border nature of cryptocurrencies, countries need to speed up the implementation of FSB regulatory recommendations and promote a coordinated regulatory framework. This was his last major speech as Chairman of the FSB, and he also mentioned the leverage and liquidity mismatch risks in the field of non-bank financial intermediaries.