BIS Warns of Critical Mass Risks in Crypto Markets

The Bank for International Settlements (BIS) has issued a stark warning: cryptocurrencies and decentralized finance (DeFi) have crossed a critical threshold, threatening global financial stability. The BIS highlights the paradox inherent in this phenomenon: while crypto promises democratization of finance, it might amplify inequalities and create systemic risks. Massive growth, faltering regulation, and contagion effects are cited as key drivers behind the warning. The report’s analysis sheds light on a critical turning point for the cryptocurrency landscape.