sources stability oversight council tether

In any event, beyond the difficulties inherent to any work involving international coordination, the task at hand is, for different reasons, particularly complex. In order to address these concerns, various initiatives are under way both at international (FSB, BCBS, CPMI, IOSCO, FATF) and at European scale (MiCA…). Under the right conditions, these vulnerabilities may scale up and eventually have negative implications for financial stability through different channels. Risks stemming from these developments are diverse and start from the limited understanding of the features and implications of these assets on the part of investors. In tandem, interconnections with the rest of the financial system have increased significantly. In any event, their high volatility is striking, as borne out by a cumulative loss of value of close to 40% in recent months. Moreover, in aggregate terms, global capitalisation of the crypto-asset market reached a peak of about $3 trillion. They may only represent a small fraction of the global financial system in terms of size (about 1%), yet some of their most prominent examples (including bitcoin, ether and tether) exhibit trading volumes that can, eventually, compare to those of other well-established asset classes. Total market capitalisation of crypto-assets grew markedly in recent years. However, unlike central bank digital currencies (CBDCs), they are not backed by a central bank or any other public authority. Moreover, crypto-assets rely heavily on distributed ledger technology (DLT) for their transmission, trading and storage. The term crypto-assets typically refers to a wide range of highly heterogeneous assets whose common trait is the fact that they are a digital representation of value or a set of contractual rights.

Sources stability oversight council tether