Financial Stability Policy

Definition ∞ Financial stability policy refers to measures governments and central banks implement to maintain the overall health and resilience of the financial system. These policies aim to prevent systemic crises, ensure the smooth functioning of financial markets, and protect consumers and investors. In the context of digital assets, this involves assessing and mitigating potential risks that cryptocurrencies or blockchain technology could pose to the broader economy. It seeks to balance innovation with systemic safeguards.
Context ∞ The impact of digital assets on financial stability policy is a major concern for global economic authorities. Central banks and international bodies are actively researching and debating how to regulate digital assets to prevent disruptions. News reports frequently cover policy proposals and discussions aimed at integrating digital assets safely into the existing financial architecture.