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ECB: Crypto may pose a risk to financial stability
By EUobserver
The European Central Bank (ECB) said on Tuesday cryptocurrencies may pose a risk to financial stability if the market maintains its rapid growth of the last two years and financial institutions become increasingly involved with crypto-assets. The significant volatility of crypto-assets could put capital at risk — with financial institutions facing reputational and climate-transition risks, the ECB warned. EU regulation on cryptocurrencies has not been agreed yet by co-legislators.