European Central Bank to monitor banks’ climate and crypto strategies
The European Union is enhancing the European Central Bank’s role to oversee climate risks and digital assets in the banking sector. This move comes with the expanding scope of risks facing the banking sector, notably those associated with climate change and the burgeoning field of digital assets. Under the new mandate, the ECB’s responsibilities will now encompass overseeing banks ’ transition strategies towards a net-zero carbon economy spanning the next three decades. This development places the ECB at the forefront of supervising how banks prepare and adapt to environmental changes, which is increasingly seen as critical given the potential financial risks of climate change. Moreover, the ECB’s jurisdiction is extended to include the supervision of bank-owned crypto asset services. This change reflects the growing importance of digital assets like Bitcoin (BTC) in the financial landscape and the need for robust regulatory frameworks to manage associa...