The Financial Stability Board (FSB) has published a consultation on the regulatory, supervisory and oversight challenges raised by “global stablecoin” arrangements as a response to the request by the G20 of examining the regulatory issues raised by global stablecoins’ (GSCs).
The paper highlights the potential developments that GSCs may bring to global payment arrangements, although several risks are taken into account, with special regard to financial stability, cyber/operational incidents, fire sales etc. The consultative document stresses the fact that existing regulatory framework needs to be clarified and underlines the importance of cross-border cooperation.
Finally, the FSB sets out high-level recommendations for effective regulatory, supervisory and oversight approaches to GSCs. Deadline for response is 15 July 2020.