Today the Financial Stability Board (FSB) published a work plan for itself and other standards setting bodies revealing that asset and currency tokenization are currently being explored.
Separated out from a long list of crypto-assets and stablecoin actions was ‘related’ work on tokenization. It revealed that the FSB is exploring current and planned asset tokenization projects in order to assess financial stability implications. It also wants to see if there are policy implications for the the FSB Committee that assesses vulnerabilities in the global financial systems, currently chaired by U.S. Treasury’s Nellie Liang. Additionally, it could pass any identified issues onto the committee on regulatory cooperation. The work has started and will complete in 2024.
Separately the Committee for Payments and Market Infrastructure (CPMI) is exploring “the benefits, risks and challenges to central banks of a tokenised financial ecosystem.” The work was classified as early stage and no schedule was provided.
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