1 August 2026
G20’s Financial Stability Board List Down 10 Rules For Stablecoins
The G20’s Financial Stability Board (FSB) outlined 10 recommendations on 14th April to regulate stablecoins such as Facebook’s Libra.
The G20 stated that rules should be the same as another business follows and faces the risk, regardless of the technology used.
FSB said, the present financial rules for payments and customer checks, are applied in parts or whole to stablecoins and also deals with the risks they generate. However, it could be different from country to country and that leads to the need for supervising a cross-border stablecoin.
To avoid stablecoin playing off one jurisdiction against another, the proposed recommendations are flexible cross-border cooperation.
FSB said, “Relevant authorities should, where necessary, clarify regulatory powers and address potential gaps in their domestic frameworks to adequately address risks posed by global stablecoins.”
According to FSB guidelines, the operator of Stablecoin must be able to manage the risks, be operationally resilient, have safeguards against cyberattacks, and systems for stopping money laundering and terrorist financing.
Facebook’s huge user base can make it an instant, systemic rival to traditional currencies. Libra has said that they are open to welcome the regulatory scrutiny.
As there is a decline in the usage of cash payments, the central banks are also looking forward to issuing their own digital currencies similar to cryptocurrencies.
FSB believes that available stablecoins are not many internationally and also pose no risks to financial stability but if it is used increases it could change.
The largest stablecoin, Tether, is still a fraction of the size of bitcoin. It is not much used beyond the world of cryptocurrency trading.
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