The growth of crypto assets like bitcoin is a bad sign for the global banking system, warned the Basel Committee.
The banking supervision forum said that crypto assets had become popular despite exhibiting a high degree of volatility and risk. The Committee noted that while the new financial instruments were immature, they still presented many risks for banks. They were threats related to liquidity, credit, market, operations (including fraud and cyber threats), money laundering, terrorist financing, as well as legal and reputation risks. Excerpts from the newsletter: