Two days after the hugely successful stock market listing of stablecoin issuer Circle, the Chair of the Financial Stability Board (FSB), Klaas Knot, reiterated the risks of stablecoins. The Financial Stability Board (FSB) monitors and makes recommendations about the global financial system. At a Group of Thirty (G30) meeting he reminded the audience of how the prospect of a Facebook-backed Libra stablecoin spurred regulators into action.
Mr Knot acknowledged the ability of stablecoins to address some of the challenges of cross border payments, but highlighted that they also introduce risks.
“A key question stands out: will stablecoins replace traditional bank-based cross border payments, or will they remain a niche solution in a fragmented global payments ecosystem? While the answer is unclear, the potential risks are not,” he said.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
