Prior to the G20 summit in Argentina, Mark Carney, the Financial Stability Board Chairman, shared a letter publicly that made the entire crypto market shoot up after a harsh week of continuous falling. In the letter, Carney addressed concerns from members of the G20 summit, who had called for further regulation of crypto-assets.
The FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time. This is in part because they are small relative to the financial system. Even at their recent peak, their combined global market value was less than 1% of global GDP. In comparison, just prior to the global financial crisis, the notional value of credit default swaps was 100% of global GDP. Their small size, and the fact that they are not substitutes for currency and with very limited use for real economy and financial transactions, has meant the linkages to the rest of the
financial system are limited.
The G20 summit isn’t finished yet, it will be held today and tomorrow, but as Carney expressed, he doesn’t have interest in discussing cryptocurrencies at the moment.
As news of regulation always has been negatively impacting the price of Bitcoin, news like this obviously did the exact opposite. After falling for a week straight, Bitcoin rose from $7518 to $8413 in a matter of around 3 hours, this is an increase of 11.9%.