Big Bankers Say Cryptocurrencies Do Not Pose a Threat to Global Financial Stability

The Financial Stability Board, a global inter-governmental body with over 20 member countries, has ruled that virtual currencies are not a threat to the world economy.

The assessment could have an impact on India, whose central bank is part of the board.

While the crypto winter shows signs of dissipating, 2019 may bring good news for the cryptocurrency ecosystem in India.

Highly unfavorable regulations imposed by the Reserve Bank of India, the country's central bank, have forced many companies in the industry to leave or close down.

Last week's report from RBI gives new hope to the country's crypto space, as all signs point to easing its stance on digital assets.

According to Quartz, the Financial Stability Board has said that virtual currencies are not a threat to the world economy.

The board, established in 2009 in the aftermath of the 2008 global financial crisis, includes finance ministers and central bankers from all of the G20 nations.

The FSB's initial assessment indicated that crypto-assets currently do not pose a risk to global financial stability.

Even though these assessments are not legally binding for any of the FSB's member countries, they are usually adhered to in order to maintain global standards, said Quartz.

India's central bank has effectively banned cryptocurrencies, forbidding all banks operating in the country from providing services with companies in the industry.