Blockchain Under Financial Stability Board’s Scanner
The Financial Stability Board has discussed and reviewed distributed ledger or blockchain technology in a wider meeting covering its priorities in 2016, during a discussion in Tokyo over the past two days.
The Financial Stability Board (FSB), a common platform that sees the coming together of senior policy makers from central banks, ministries of finance and other supervisory and regulatory authorities from G20 nations has revealed that it has reviewed distributed ledger technologies in a meeting. Held over the last two days in Tokyo, Japan, the meeting was to review the international body’s priorities in 2016.
In a press release, the FSB stated that it is reviewing major areas in financial technology . Distributed ledger technology or blockchain tech, which is the same innovation underpinning Bitcoin gets a notable mention, all by itself. The FSB has proposed a framework for categorizing distributed ledgers and Fintech to assess any implications for financial stability as a result of the new innovations.
An excerpt from the release stated:
Plenary members discussed the issue raised for public authorities by these technologies, possible steps to address potential risks, and opportunities for cooperation in the FSB and with the standard-setting bodies to deepen analysis and develop regulatory perspectives.
As a common platform of global financial regulators and policy makers, the FSB sees Mark Carney as its chairman. Carney is also the governor of England’s central bank, the Bank of England which has been consistently and proactively encouraging of blockchain innovation and heralding England as a Fintech destination.
The Bank of England has previously joined an Inaugural Bitcoin Forum in 2015 and has also revealed jobs for interns with blockchain experience.
The key priorities for the FSB in 2016 include reforms to be included in the post-financial-crisis era following the financial collapse of 2008. Besides assessing and being vigilant toward emerging vulnerabilities in the financial system, the FSB also sees it as a priority to address any unintended consequences with the implementation of post-crisis reforms.
Key vulnerabilities discussed include a slowly sobering global economic growth outlook, high debt levels, low price pressures and a low tier of productivity in advanced and emerging economies.
Featured image from Shutterstock.
