The wild ride continues! Bitcoin price jumped by well over $1,000 after Mark Carney of all people told the G20 countries that the cryptocurrency poses not threat to financial stability.
He is the chairman of the Financial Stability Board.
And also heads the Bank of England, as you may well recall.
The letter (PDF file) dated March 13 was addressed to G20 Finance Ministers and Central Bank Governors who have gathered for the summit in Argentina that starts tomorrow, a red letter day in the world of crypto, amid rumors that cryptocurrency regulations were coming on an international stage.
Nevertheless, the big news now is that FSB, an international body that monitors and makes recommendations about the global financial system does not see Bitcoin and other cryptocurrencies as a threat to the global economy.
“The FSB’s initial assessment is that crypto-assets do not pose risks to global financial stability at this time. This is in part because they are small relative to the financial system.
Even at their recent peak, their (cryptocurrencies) combined global market value was less than 1% of global GDP. In comparison, just prior to the global financial crisis (in 2008), the notional value of credit default swaps was 100% of global GDP.”
Cryptocurrency enthusiasts are sure to see this as a breath of fresh air, among speculation that leading economies like Japan, France, and the US are calling for a joint response around crypto.
The market reacted bullishly to the letter, with Bitcoin surging 10% to hit $8,600 on Monday.
Other digital coins like Ethereum, Ripple, Bitcoin Cash, Cardano were also up.
The G20 summit starts Tuesday, March 20.