![]() ![]() The New York State Department of Financial Services has conducted several cybersecurity surveys with banks and insurance companies and shared its findings with other state regulators and the public at large, said Maria Filipakis, its executive deputy superintendent of capital markets.įinancial services companies should implement top-down policies to tighten their safeguards so that "cybersecurity is woven into the fabric of a firm," Filipakis said. State regulators have also taken an interest. In the event of a cyberattack, Treasury makes sure to "share that kind of information with our partners in the law enforcement and intelligence communities," said Leslie Ireland, the assistant secretary for intelligence and analysis. ![]() Several agencies have collaborated on "joint exercises" to test their responses to cybersecurity emergencies, said Treasury Secretary Jacob Lew. Government officials noted that they are already working together in many respects. "The government as a convener is important," she said. The finance flowing into fossil fuels is gambling on future of the planet.Speaking on the panel, Ellen Richey, the vice chairman of risk and public policy at Visa, said that coordination among global policymakers was also necessary to avoid "a proliferation of standards." Whilst scenario models might not predict everything in the future, what we do know is that we are heading to a world beyond 1.5degrees where: we are likely to lock-in carbon intensities that may trigger feedback loops and hasten the breakdown of natural systems that have supported life on earth to avoid this, we may witness the ‘inevitable policy response’ causing huge price shocks, write-offs, and stranded assets.īetting on bitcoin might undermine financial stability. There’s no reason that they cannot use the same approach to climate change (an approach endorsed by leading experts like Sarah Bloom Raskin). Can they predict the future volatility of cryptocurrencies more accurately than climate change impacts? For bitcoin, central banks appear to be applying the precautionary principle. Notice, in comparison that the regulators have not set up a Taksforce for Crypto-Related Finance Disclosures, they’ve changed the rules. With support of the G7 the TCFD is well on the path to becoming mandatory meaning that financial institutions will have to disclose their climate risks (they will also now include carbon accounts). Similar proposals have echoed this (such as the paper by CAP in the US earlier this year) together with comprehensive interventions to tackle existing fossil fuel finance via the banking system and financial intermediaries in the shadow banking system. This was deemed to be the most impactful and feasible intervention in climate policy in a research report by Climate Safe Lending Network in 2021. full equity backing – thereby making banks put their own money at risk – not other people’s). In 2020, Finance Watch set out a proposal for capital held against new fossil fuels to be increased by 1250% (e.g. The IEA have set out their new scenario (NZE2050) which lays out steps required to prevent global climate change beyond 1.5oC – this includes an immediate halt to investment into the expansion or exploration of fossil fuels. Let’s compare the announcement with what Central Bankers could be doing for fossil fuels. “Certain cryptoassets have exhibited a high degree of volatility, and could present risks for banks as exposures increase, including liquidity risk credit risk market risk operational risk (including fraud and cyber risks) money laundering / terrorist financing risk and legal and reputation risks.” The major concern however, is financial stability: Why would the central bankers step in with such consequential action? Several reasons are given by the BCBS who list concerns generated by cryptocurrencies including: “consumer protection, money laundering and terrorist financing, and their carbon footprint”. Commentators have said that the move amounts to saying to banks: “don’t do it, but if you do, put your own money at risk - not other people's” That’s the equivalent of holding full equity against the risks of holding or trading currencies like Bitcoin on its books. ![]() Bitcoin has Helped ‘Mine’ a Capital Idea for Fossil Fuel FinanceĬentral Bankers who form the Basel Committee on Banking Supervision (BCBS) issued a proposal to increase the capital held against cryptocurrencies that a bank holds by 1250%. ![]()
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