Systemic Technology Risk

Definition ∞ Systemic Technology Risk refers to the potential for a technological failure or disruption in one part of the financial system to trigger widespread instability or collapse across the entire system. This risk arises from the interconnectedness and interdependence of various technological infrastructures. It is a critical concern for financial stability. Such risks can have far-reaching economic consequences.
Context ∞ Systemic technology risk is a growing concern within the digital asset ecosystem, particularly with the increasing reliance on a few dominant blockchain protocols or critical infrastructure providers. A significant cyberattack or operational failure affecting a major stablecoin or decentralized finance platform could potentially destabilize broader crypto markets. Regulators are actively assessing these risks to prevent financial contagion.