The Financial Stability Board has published a report on regulatory issues arising with respect to so-called stablecoins. The FSB defines a stablecoin as "a crypto-asset designed to maintain a stable value relative to another asset (typically a unit of currency or commodity) or a basket of assets" which may be "collateralised by fiat currency or commodities, or supported by algorithms". It uses the term "global stablecoins" to refer to "stablecoins with a potential global reach and the ability to rapidly scale in terms of users/holders of the crypto-asset".
Noting that global stablecoins, such as Libra, could change the FSB's existing assessment that crypto-assets do not present a material risk to financial stability, the FSB intends to examine existing supervisory and regulatory approaches in the area, focusing on any cross-border issues. The FSB will use that information to consider whether regulatory changes are necessary to address any risk concerns that a single stablecoin or stablecoins as an ecosystem may raise. Following that, the FSB will advise on any multilateral responses that may be needed to mitigate against a risk to financial stability. The FSB will publish an advisory report in April 2020 and the final report to the G20 ministers in July 2020.
Financial Stability Board to Assess Potential Risks of Stablecoin
October 18, 2019
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