Today the Financial Stability Board (FSB) delivered its interim report to the G20 group of nations, currently headed by South Africa. In a brief letter to G20 Finance Ministers and central banks, FSB Chair Andrew Bailey focused on four topics: cross border payments, crypto-assets and stablecoins, implementation monitoring, and AI – giving cross border payments and crypto top billing.
Last week the FSB noted that despite the completion of the bulk of work on cross border payments, the targets set for 2027 will not be met. In fact, progress has been limited.
On the crypto front, both the letter and accompanying report highlight the growth of the crypto sector and the increasing integration with traditional finance. Hence, there’s rising potential for a shock in the crypto sector that could impact financial stability. While many jurisdictions are planning (93%) or have already created (88%) regulatory frameworks for crypto-assets and stablecoins, these often cover anti money laundering and sanctions compliance rather than issues that would protect financial stability.
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