Released on May 14, the “Crypto-Assets: Implications for financial stability, monetary policy, and payments and market infrastructures” report was prepared under the aegis of the ECB Internal Crypto-Assets Task Force (ICA-TF).
This paper presents the outcomes of the analysis of the ICA-TF in ECB’s continuing effort to “monitor crypto-assets, raise awareness and develop preparedness.”
The paper comes divided into three main parts with the first dedicated to establishing the defining characteristics of cryptoassets “in the absence of a common definition and as a basis for the consistent analysis of this phenomenon”.
The second focuses on the analysis of “the recent developments in the crypto-assets market and unfolding links with financial markets and the economy”.
The third part is an assessment of “the potential impact of crypto-assets on monetary policy, payments and market infrastructures, and financial stability”.
The main body of the document is followed by an appendix making the case for a central bank digital currency in the European Union.
The report concludes that at present cryptoassets pose limited risks that can be managed using existing regulation but stresses the importance of continuous monitoring.
Photo: Alex Guibord