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Financial Stability Board puts cross-border stablecoin risks before G20

The Financial Stability Board presented its work on cross-border stablecoin vulnerabilities ahead of the G20 meeting. A note accompanying chair Andrew Bailey’s letter focuses on monitoring data, cooperation between authorities and information sharing. Gaps in supervision and crisis-management arrangements across jurisdictions matter for the assets’ links with conventional finance. The board is also supporting implementation of its 2023 recommendations.

Economics & Markets··Midday
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Cross-border supervision enters the G20 agenda

The Financial Stability Board (FSB), which coordinates national financial authorities and international institutions, put cross-border stablecoin risks before the G20. Chair Andrew Bailey’s letter, published on 12 October, was addressed to finance ministers and central-bank governors of the group of major economies. Bailey highlighted gaps in arrangements for supervision and crisis management across jurisdictions.[1], [2]

The letter precedes the meeting scheduled for 15 October. Bailey is also governor of the Bank of England. It is accompanied by a note on global stablecoin arrangements, bringing together the board’s work on vulnerabilities and the data used to monitor financial stability.[1]

Monitoring data and information sharing receive attention

The accompanying note identifies further work that could help authorities assess, identify and monitor cross-border vulnerabilities. The Financial Stability Board emphasises stronger monitoring across borders, cooperation between authorities and information sharing. These priorities accompany Bailey’s warning about gaps in supervision and crisis-management arrangements spanning different jurisdictions.[1], [2]

Implementation of the 2023 recommendations continues

The work also supports implementation of the 2023 recommendations. The FSB brings together national financial authorities from 24 countries and jurisdictions, international financial institutions and standard-setting bodies. It conducts outreach with approximately 70 other jurisdictions through six regional consultative groups. Its Basel secretariat is hosted by the Bank for International Settlements. The letter also introduces work requested by the US G20 presidency.[1]

For more information on this topic, you can read the related columns.

References

  1. News sourceFinancial Stability BoardFSB expands monitoring of cross-border risks in global stablecoins↩1↩2↩3↩4
  2. News sourceCointelegraphFinancial Stability Board puts cross-border stablecoin risks before G20↩1↩2
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