The Financial Stability Board (FSB) has made a recommendation, explaining how the g-20 group to cope up with stablecoins. This, according to the FSB, the financial stability and undermine it, and the big economies have to fit the regulatory framework to implement it.
Recommendations to the G20
The FSB is an international body that monitors and assists in the design of policies for the global financial system, has 10 recommendations on stablecoins to be written. All of these recommendations are directed at the Group of 20 Economies (G-20). The netherlands, the European Union is represented within the G-20.
A major risk to the financial system
The document (PDF) states that ” stablecoins to the same rules, would have to pay the other companies with the same risk. It says among other things:
Even though stablecoins are able to contribute to a new global payment system be able to use such instruments to systemic risk in the financial system and pose significant risks for the real sector of the economy to yield, inter alia, by the replacement of the domestic currency.
Anti-money laundering and terrorism
The FSB also said that there is international co-operation should be to ensure that stablecoin in administrative law from entering. Also, you should stablecoin companies, and the risks to effectively manage operational resilience, and well-protected. And, of course, is the time-honored principle: it should not be used for money-laundering and the financing of terrorism.
The relevant authorities must, where necessary, the legal powers and clarify the potential gaps in their national frameworks to tackle the risk of global stablecoins to deal with it.
All of them, thanks to the Libra
It looks like it is made in the air, however, the FSB has been here for a long time working on it. That is in part due to Facebook with a ‘cryptocurrency’ Libra in the court was. Earlier, said David Marcus, who will be the Libra project results, and that Balance is not stablecoins to. Later, led by Mark Zuckerberg in doubt, to ask that the Balance be treated as such, it would be able to.
Libra was in his own words, supported by some of the largest companies in the world. Many companies have had their support withdrawn under pressure from the governments of the world. These governments deem that the time is not yet ripe for the Libra, because there are no clear rules. Also, the risks have never been identified.
This is not the first time that a major international organisation with their concerns about stablecoins. Last year, he warned, a working group of the G7, that stablecoins could represent a threat to market integrity.