'Important to arrive at a common international approach to crypto': RBI

Financial Stability Report: The FTX turmoil, RBI said, revealed that crypto is highly volatile, exhibits high correlations with equities and does not act as a hedge against inflation

The Crypto market remains volatile, and cryptocurrencies form "an unstable ecosystem", the Reserve Bank of India (RBI) said in its Financial Stability Report (FSR) released on Thursday. To address financial stability risks and protect investors, it is important to arrive at a "common approach to crypto assets", the report added.

"Although the crypto assets market remains volatile, there have not yet been any spillovers onto the stability of the formal financial system. The accumulated experience, however, suggests that they form an unstable ecosystem and there is growing evidence that they remain highly concentrated and interconnected," it said.

The FTX turmoil,