Today the Financial Stability Board (FSB) said that many existing stablecoins wouldn’t meet its final recommendations for global stablecoin arrangements, which it plans to release this year. It made the observation in a letter about its 2023 work plan sent to the G20 and central bankers. The stablecoin recommendations include governance, redemption and effective stabilization mechanisms.
It aims to provide national regulators with guidance on regulating, supervising and overseeing global stablecoin arrangements, the ones expected to reach a massive scale. The goal is to achieve a consistent approach internationally.
The initiative was triggered by Facebook unveiling the Libra stablecoin project, which was renamed to Diem and eventually dropped when regulators blocked multiple launch avenues.
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