A global financial body, which includes India, says cryptocurrencies aren’t a threat

Finally there’s some good news for the Indian cryptocurrency ecosystem—and this one’s from a global financial body.

An inter-governmental body that makes recommendations about the health of the world economy has said that virtual currencies are not a threat.

The observation was made by the Financial Stability Board (FSB), which counts over 20 countries as its members, including the US, UK, China, and India. The assessment came to light after India’s central bank, the Reserve Bank of India (RBI), quoted the agency in a report released last week. ”The FSB has undertaken a review of the financial stability risks posed by the rapid growth of crypto-assets. Its initial assessment is that crypto-assets do not pose risks to global financial stability currently,” the RBI report said.
Nevertheless, the central bank also added a note of caution as it has adopted a wait-and-watch policy towards crypto assets. “The market continues to evolve rapidly, however, and this initial assessment could change if crypto-assets were to become more widely used or interconnected with the core of the regulated financial system,” the RBI noted.

The FSB was established in 2009 by finance ministers and central bankers from G-20 nations in the aftermath of the global financial crisis. Even though the recommendations of the FSB are not legally binding on member countries, they are typically adhered to, so as to ensure that the international standards are maintained. Its latest observation on cryptocurrency, therefore, comes as a ray of hope for the battered global crypto-ecosystem.