Add as a preferred source on GoogleFSB Warns G20 Stablecoin Gaps Could Spread Stress to Traditional Markets
FSB Chair Andrew Bailey said cross-border oversight and crisis-response systems remain immature, leaving banks and markets exposed to a stablecoin run.
The Financial Stability Board warned G20 finance ministers and central bank governors that immature cross-border stablecoin oversight could transmit stress into banks and traditional financial markets.
FSB Chair Andrew Bailey said crisis-management arrangements for stablecoins also remain underdeveloped. A run could force issuers to sell reserve assets while prompting users to withdraw deposits from banks, creating pressure beyond the crypto market.
Stablecoins involving multiple issuers face an additional vulnerability: redemption requests could become concentrated on a single issuer, increasing pressure during a period of market stress.
The FSB also urged the G20 to support safe and prudent use of artificial intelligence, with a focus on cybersecurity and risks tied to third-party service providers.
Riza Dagoc
Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.