FSB releases recommendations to regulate 'global stablecoins' such as Libra
The Financial Stability Board has warned that global stablecoins could pose systemic risks to the monetary systems of nation-states. The G20’s financial watchdog, the Financial Stability Board (FSB), has published regulatory recommendations opposing the trans-national ambitions of “global stablecoins,” such as Facebook’s Libra project.The FSB’s report offers regulatory recommendations to G20 member states and the broader international community intended to prevent stablecoin projects from using opportunities for "regulatory arbitrage" and becoming embedded within the financial structures....
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The need to regulate global stablecoins like Libra doesn't mean authorities can't embrace innovation, according to according to a BIS working paper.
The British Treasury Department has affirmed its commitment to regulate stablecoins after the collapse of terrausd (UST) and terra (LUNA). “This will create the conditions for issuers and service providers to operate and grow in the U.K., whilst ensuring financial stability and high regulatory standards,” said an HM Treasury spokesperson.
Regulation of Stablecoins in the UK
HM Treasury, the U.K. Treasury Department, is moving forward with plans to regulate payment stablecoins despite a crypto market meltdown last week, The Telegraph reported Saturday.
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The Libra Association has made a key hire in its pursuit of a new cryptocurrency and payments system. The Libra Association, which manages Facebook’s quiet cryptocurrency project, has appointed a general counsel to oversee the development of its forthcoming payment system. In an official press release, the Libra Association Wednesday introduced Saumya Bhavsar as the new general counsel of Libra Networks, the entity charged with operating the blockchain-based payment system. Bhavsar comes with two decades of experience in the financial services industry serving in various legal, regulatory....
After proposing automated ways to monitor global stablecoins like Libra, a new report from BIS argues that a better solution may ultimately be central bank digital currencies. Facebook’s proposal for its digital currency, Libra, was a wake-up call for international regulatory agencies, finance ministries and central bankers. All these actors recognized that the company’s reach across its three platforms had the potential to accelerate adoption of a global stablecoin to an unprecedented extent.In a new paper from the Bank of International Settlements, three analysts have proposed that the....
The G7's recent rejection of Libra doesn’t seem to have slowed them down. The Libra Association, which oversees the as-yet unreleased Libra cryptocurrency, has chosen a chief financial officer and chief risk officer for the project. Ian Jenkins, who touts experience from HSBC, Santander, and Credit Suisse, will supervise the Libra Network’s finances and risk management, according to an Oct. 15 announcement.The news comes only days after the multi governmental group G7 explained that the project needed proper regulatory measures in place prior to launch. “The G7 continues to maintain that....