Crypto assets could threaten financial stability, CBI warns

Bank says so-called ‘cryptocurrencies’ such as bitcoin must be regulated to protect consumers, the environment and economies

Unbacked crypto-assets such as bitcoin are subject to extreme price volatility and are speculative, because their price often relies solely on consumer demand, the Central Bank said

The financial stability of economies could be threatened by “fast-evolving” crypto assets, the regulation of which has now become a priority for the Central Bank of Ireland (CBI), the regulator has told politicians.

At a recent briefing of members of the Oireachtas Finance Committee, the Central Bank said the global crypto market was estimated to be worth $1.9 trillion, but added that it had “not yet given rise to financial stability issues” given its relatively ...