The European Systemic Risk Board (ESRB) has today published a report outlining the systemic implications of crypto markets and proposing policy options to address the risks stemming from crypto-assets and decentralised finance (DeFi). The report finds that while this past year has been turbulent for cryptos and DeFi, the impact on the financial system was limited. The crypto market has few interlinkages with the traditional financial sector and the real economy, and none of those links are currently significant. However, given the exponential growth and high volatility of cryptos, they need to be closely monitored as ... (full story)