Mining the environment – is climate risk priced into cryptoassets? discusses the climate transition risk of certain cryptoassets and highlights potential policy responses for authorities, including prudential standard-setters. To this end, the article provides an overview of the estimated carbon footprint of certain cryptoassets such as bitcoin and its causes. It goes on to highlight that an alternative and much less energy-intensive blockchain technology exists that can achieve similar results. Finally, it presents potential policy options.
A deep dive into crypto financial risks: stablecoins, DeFi and climate transition risk - This issue of the Macroprudential Bulletin takes a deep dive into the risks and policy implications of several segments of the cryptoasset market.
Stablecoins’ role in crypto and beyond: functions, risks and policy discusses the financial stability implications of stablecoins stemming from their current role in the cryptoasset ecosystem. It analyses the importance of stablecoins within wider cryptoasset markets before going on to examine whether they fulfil the requirements of practical means of payment in the real economy. Finally, the article highlights what the current role of stablecoins implies for financial stability and the importance of their regulation.