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Cryptoassets: potential implications for financial stability

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  • Faidon Kalfaoglou

    (Bank of Greece)

Abstract

The phenomenon of cryptoassets emerged over the past few years and has prompted several national and international institutions to deal with the issue, in particular with its implications for financial stability. In order to assess the impact, a taxonomy is needed. The paper starts with exploring the blockchain, which is the enabling technology, and continues with a discussion on Financial Technology (FinTech) both in general and with a focus on blockchain applications. Further, the ecosystem of cryptoassets is explored and an analysis of cryptocurrencies, which are the most popular application of cryptoassets, is attempted. In each case, a non-technical briefing on the topic is provided, followed by some thoughts on potential financial stability implications. The issue is rather new and largely inconclusive. For the time being, we adhere to international institutions’ general recommendation that the risks are not significant as yet, but the phenomenon is dynamic and vigilant monitoring is warranted.

Suggested Citation

  • Faidon Kalfaoglou, 2019. "Cryptoassets: potential implications for financial stability," Economic Bulletin, Bank of Greece, issue 50, pages 111-134, December.
    • Handle: RePEc:bog:econbl:y:2019:i:50:p:111-134
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    More about this item

    Keywords

    blockchain; cryptography; FinTech; cryptoassets; digital assets; money; cryptocurrencies;
    All these keywords.

    JEL classification:

    • G1 - Financial Economics - - General Financial Markets
    • G2 - Financial Economics - - Financial Institutions and Services
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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