Today the BIS and IOSCO published a report and launched a consultation on systemically important stablecoins. This is a follow-up to a G20 report on cross border payments and the regulatory activity triggered when Facebook first announced plans for the Libra stablecoin, now Diem. Feedback is requested by December 1.
At this stage, the organizations are not imposing new rules for stablecoins. However, they provide preliminary guidance for how systemically important stablecoins should comply with Principles for Financial Market Infrastructures (PFMI) rules. In other words, big stablecoins should be regulated like major payment systems.
“This consultation document is part of an ongoing commitment by the international regulatory community to ensure the principle of ‘same risk, same regulation’, to identify potential risks and to help develop appropriate oversight to safeguard financial stability,” said Sir Jon Cunliffe, Chair of the CPMI and Deputy Governor at the Bank of England
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