GENEVA: A financial regulator on Monday unveiled a strategy to monitor whether cryptocurrencies such as Bitcoin pose a threat to world economic stability.
The plan follows on from a concerted drive by central banks and regulatory bodies to keep cryptocurrencies at bay.
In a statement, the Financial Stability Board (FSB), which oversees regulation among G20 economies, said it believes “crypto-assets do not pose a material risk to global financial stability at this time.”
But, the FSB added, the speed at which cryptocurrencies are spreading, the lack of solid data on their use and uncertainty over which rules apply in the sector should spur major economies to redouble their scrutiny.
“Monitoring the size and growth of crypto-asset markets is critical to understanding the potential size of wealth effects, should valuations fall,” the FSB said.
The framework also calls of an examination of whether cryptocurrencies are evolving from a method of paying for goods and services into a securities product, which individuals are holdings as a savings device instead of a stock or a bond.
The FSB also underscored “the scarcity of reliable data on banks’ holdings of crypto-assets.”
That point serves as a chilling reminder of the 2008 financial crisis, which was made worse by the fact that some banks did not know their level of exposure to securities backed by junk mortgages, even after those mortgages started to fail.
The FSB said an affiliate called the Basel Committee on Banking Supervision was “conducting an initial stocktake on the materiality of banks’ direct and indirect exposures to crypto-assets.”
It warned that the exposure of financial institutions to cryptocurrencies will serve as a key measurement of the “risks to the broader financial system.”
The FSB said it expects its plan will face hurdles from the outset, given the “data gaps” and “lack of transparency” in the sector, especially concerning the individuals trading coins on a daily basis.
The FSB, currently chaired by Bank of England chief Mark Carney, said it will formally present the framework to G20 finance ministers when they meet in Buenos Aires later this month.
The call for tighter monitoring follows major swings in the value of assets like Bitcoin and the constant emergence of new cryptocurrencies, which has raised fears that the unregulated and opaque market could pose a rising threat to investors.
Regulator unveils plan to monitor cryptocurrency threat
Regulator unveils plan to monitor cryptocurrency threat
- “Monitoring the size and growth of crypto-asset markets is critical.." FSB says
- Plan follows drive by central banks and regulatory bodies to keep cryptocurrencies at bay
Acwa signs key terms to develop 5GW of renewable energy capacity in Turkiye
JEDDAH: Saudi utility giant Acwa has signed key investment agreements with Turkiye’s Ministry of Energy and Natural Resources to develop up to 5 gigawatts of renewable energy capacity, starting with 2GW of solar power across two plants in Sivas and Taseli.
Under the investment agreement, Acwa will develop, finance, and construct, as well as commission and operate both facilities, according to a press release.
The program builds on the company’s first investment in Turkiye, the 927-megawatt Kirikkale Independent Power Plant, valued at $930 million, which offsets approximately 1.8 million tonnes of carbon dioxide annually, the statement added.
A separate power purchase agreement has been concluded with Elektrik Uretim Anonim Sirketi for the sale of electricity generated by each facility.
Turkiye aims to boost solar and wind capacity to 120GW by 2035, supported by around $80 billion in investment, while recent projects have already helped prevent 12.5 million tonnes of CO2 emissions and reduced reliance on imported natural gas.
Turkiye’s energy sector has undergone a rapid transformation in recent years, with renewable power emerging as a central pillar of its strategy.
Raad Al-Saady, vice chairman and managing director of ACWA, said: “The signing of the IA (implementation agreement) and PPA key terms marks a pivotal moment in Acwa’s partnership with Turkiye, reflecting the country’s strong potential as a clean energy leader and manufacturing powerhouse.”
He added: “Building on our long-standing presence, including the 927MW Kirikkale Power Plant commissioned in 2017, this step elevates our partnership to a new level,” Al-Saady said.
In its statement, Acwa said the 5GW renewable energy program will deliver electricity at fixed prices, enhancing predictability for grid planning and supporting long-term industrial investment.
By replacing imported fossil fuels with domestically generated clean energy, the initiative is expected to reduce Turkiye’s exposure to global energy market volatility, strengthening energy security and lowering long-term power costs.
The company added that the economic impact will extend beyond the anticipated investment of up to $5 billion in foreign direct investment, with thousands of jobs expected during the construction phase and hundreds of high-skilled roles created during operations.
The energy firm concluded that its existing progress in Turkiye reflects a strong appreciation for Turkish engineering, construction, and manufacturing capacity, adding that localization has been a strategic priority, and it has already achieved 100 percent local employment at its developments in the country.
