The carbon footprint of crypto assets will decrease their valuation as states look to cut carbon emissions, a paper published by the European Central Bank says. This could have a knock-on effect for banks with crypto exposures. 

Isabella Gschossmann and colleagues, in their paper Mining the environment – is climate risk priced into crypto-assets?, note the Basel Committee on Banking Supervision’s proposals for climate risk supervision apply to “any” bank exposure, thereby incorporating crypto.