For the European Central Bank, while the collapse of the cryptocurrency platform “is not a surprise”, the “speed” of the fall is striking.
The resounding bankruptcy of the cryptocurrency trading platform FTX this month, or the storm on the British bond market after the “mini-budget” of ex-Prime Minister Liz Truss, at the end of September, are they warning signs of large-scale financial destabilization? We are not there yet. However, “the risks to financial stability have increased”, according to a report from the European Central Bank (ECB) released on Wednesday.
The fall of a major crypto-asset player, compared by some to that of Lehman Brothers in 2008, is not “not a surprise”, according to ECB Vice-President Luis de Guindos, but the “speed” how the intrinsic volatility of these markets has spilled over to a company born in this ecosystem is striking. There is no risk of contagion outside the cryptocurrency environment at this stage, he said.
That said, the potential existence of channels “dark” dissemination of…