The Federal Deposit Insurance Corporation (FDIC) has stated that activities related to cryptocurrencies pose a risk to the US banking system.
In its annual risk report, the FDIC stated that services for cryptoassets can create complexity in US banking systems. Expressing that the complexity in question may contain various risks, the FDIC warned the US banking system and expressed its concerns about cryptocurrencies. The FDIC, in addition to other regulators in banking systems, has proposed new plans to examine the risks of crypto assets.
Banking activities were discussed in the annual risk report
In line with its annual risk report review for 2023, the FDIC stated that services related to cryptocurrencies pose risks 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. Because of this complexity comes various risks.”
Some of the risks identified in the annual risk report included fraud, legal uncertainties and misleading risk management.
Touching on the stablecoin issue, the FDIC stated that banks holding stablecoins are at risk of outflowing deposits from their reserves.
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