US Federal Reserve Considers Adding Bitcoin Market Collapse to Stress Tests
The Federal Reserve System, an independent central banking system of the US, is currently looking into how to manage various “extraordinary” events - which could potentially have adverse effects on America’s traditional financial markets. In an official policy document titled “Amendments to Policy Statement on the Scenario Design Framework for Stress Testing” (published on February 28th, 2019), the Federal Reserve noted: “Several commenters strongly supported the inclusion of salient market risks in the scenarios in general to make the supervisory stress test sufficiently dynamic … [and] that the Board consider extraordinary shocks, such as a war with North Korea, the collapse of the Bitcoin market, or major losses caused by trader misconduct, in its scenarios.”
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