🚨BIS#WARNS : CRYPTO REACHES “CRITICAL MASS”

The Bank for International Settlements (BIS) says crypto and DeFi now pose real financial stability risks as they gain traction in traditional finance (TradFi).

🔹Spot Bitcoin ETFs approved by US SEC in Jan 2024

🔹Real World Asset (RWA) tokenization expanding

Stability Concerns:

🔹Wealth transfer: Poor buy, rich exit in crises

🔹TradFi exposure via ETFs, DEXs & smart contracts

🔹Risks to payments, settlements, and emerging markets

BIS Recommendation: Adopt a “contain” approach—regulate DeFi like TradFi:

🔹KYC compliance

🔹Protocol operator roles

🔹Risk safeguards for banks & asset managers

Next Steps: More research into DAOs, RWA systemic risk, and stablecoin fragility

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