By ensuring that all citizens have inalienable rights and protections, the rule of law constrains the majority’s behaviour towards the minorities. And by maintaining a predictable economic environment against populist democratic instincts, the rule of law ensures that businesses can invest securely today for the future. What about asking the question the other way? Would rule of law not be enough?
As the statement makes clear—and as has been obvious throughout the last few months—crypto sector depositors may have assets that can be affected by volatility in the sector. This volatility can lead to unpredictable, rapid, and correlated deposit inflows and withdrawals, and thus the liquidity risks of their deposits, of course, require some additional attention.