Fed’s latest financial stability report has been released. In the report, cryptocurrencies were discussed as a greater risk than climate change.
The report, which draws attention to a number of security vulnerabilities in the financial sector, also addressed stablecoins. The issue of redemption, which has been brought up again in the past weeks regarding stablecoins, has been discussed. The report included the following statements on the subject:
The report also included two surveys in which industry participants indicated possible risks to financial stability. In the first spring survey, cryptocurrencies and stablecoins ranked ninth, while in the second autumn survey, they rose to fifth place, surpassing climate change. The second survey also saw an increase in fears over the erupting US-China tensions with Evergrande.