Today the Financial Stability Board (FSB) published a report that reviews the progress on the regulation of Global Stablecoins. The ‘global’ terminology was created in response to Facebook’s unveiling of the Libra stablecoin, which has since been renamed Diem and substantially evolved. It’s particularly the potentially massive scale of stablecoins that concerns regulators because of the likely impact on payment systems and the financial stability risks.
The FSB emphasized that its work aims to complement that of other standard-setting bodies. Yesterday the BIS (CPMI) and IOSCO published a paper on stablecoins exploring how they should comply with existing principles for regulating payment infrastructures. And the head of the BIS, Agustín Carstens, discussed the breadth of policy responses.
In April last year, the FSB made ten high-level recommendations for regulating global stablecoins. Part of today’s report reviews progress in some countries and concludes that the steps taken are still at an early stage so far. For example, the United States is considering imposing rules on stablecoins and the UK conducted a consultation earlier this year.
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