The Financial Stability Board (FSB) is reportedly investigating the potential risk and challenges presented by stablecoins.
G7 is also in the process of finalising a preliminary assessment of the digital currency, while G20 has asked the FSB to lead this work afterwards, according to a report from FinTech Futures.
Speaking at the European Banking Federation’s summit in Belgium, FSB chair Randal Quarles said, “although there is a small risk to financial stability today, there is no doubt the potential scale of stablecoins, and other crypto-assets yet to emerge may pose regulatory challenges.”
The body has already begun exploring the existing regulations which apply to stablecoins in the relevant jurisdictions and will report to G20 if any action need be taken.
Last year, the FSB published a report which set out framework for monitoring the crypto-asset market. The report was constructed in collaboration with the Committee on Payments and Market Infrastructures.
Its report outlines the metrics the FSB uses to monitor crypto-asset markets during its assessments of vulnerabilities in the financial system.
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