In a report by Cryptoslate released on January 5, 2018, the Financial Stability Board (FSB), a global inter-governmental body with over 20 member countries, has ruled that cryptocurrencies do not constitute a threat to global financial stability. The body which was established in 2009 after the 2008 global financial crisis, is made up of finance ministers and central bankers from all member countries.
According to Quartz, the board’s assessment came to light after the Reserve Bank of India (RBI) quoted the agency in a report released last week. The FSB’s initial assessment indicated that crypto-assets currently do not pose a risk to global financial stability.
Although these assessments are not legally binding for any of the FSB’s member countries, but member countries usually chose to abide by the board’s rulings in order to maintain global standards, said Quartz. With that in mind, the report was well received by the crypto community in India, who view it as a ray of hope for the following year. We recall that India’s central bank banned cryptocurrencies, forbidding all banks operating in the country from providing services with companies in the industry.
The latest assessment by the Financial Stability Board could be easing India’s Central Bank stance on cryptocurrencies. Cryptocurrency enthusiasts may want digital currencies to one day replace fiat. Yet, it seems that the G20 is not too concerned. Perhaps this will give crypto more time to flourish under the existing economic framework.