Definition ∞ Central bank supervision refers to the oversight and regulation exercised by a nation’s central bank over financial institutions within its jurisdiction. This function aims to maintain financial stability, protect consumers, and ensure the soundness of the banking system. In the evolving digital asset landscape, central banks are increasingly examining crypto-related entities and activities. Their regulatory scope often extends to payment systems, monetary policy, and systemic risk management.
Context ∞ Reports on central bank supervision frequently appear in crypto news, particularly concerning stablecoins, central bank digital currencies (CBDCs), and the integration of traditional finance with digital asset markets. Discussions often revolve around consumer protection, anti-money laundering (AML) efforts, and the potential impact of decentralized finance (DeFi) on established financial structures. The extent and nature of this supervision are critical factors shaping the regulatory future and mainstream acceptance of digital assets.