Federal Deposit Insurance Corporation (FDIC), said that activities related to cryptocurrencies pose a risk to the US banking system.
In its annual risk report, the FDIC said that services for cryptocurrencies could create complications in the US banking system. Expressing that the complexity in question may pose various risks, the FDIC warned the US banking system and expressed its concern about cryptocurrencies. FDICNew plans were proposed to investigate the risks of crypto assets, among other regulators in the banking system.
Banking activities discussed in Annual Risk Report
In line with its annual risk report review for 2023, the FDIC said that cryptocurrency-related services pose a risk to the US banking system. The FDIC is a dynamic body that insures deposits and oversees financial institutions in the United States. Reference was made to the dynamism and innovation of cryptocurrencies:
“Cryptocurrencies are a difficult asset to fully appreciate. This complexity brings with it various risks.”
Some of the risks identified in the Annual Risk Report include fraud, legal uncertainties and misleading risk management.
stable coins Speaking on the issue, the FDIC said that banks holding stablecoins are at risk of outflow of deposits from their reserves.
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