CENTRAL BANKS WARN

Summary from the TLDR Crypto newsletter

Global central banks say that cryptocurrency assets have increased financial risks in less developed economies and should be regulated like other assets. The Consultative Group of Directors of Financial Stability urged a quicker, bolder regulatory approach, especially if crypto assets are more broadly adopted by retail investors. However, it’s not clear what risks they are referencing here - whether it’s asset volatility risk or protocol vulnerability risk. It’s been well documented that stablecoins have provided a safe haven for individuals in high-inflation environments, so it seems like it would be difficult to argue that those assets increase risk.