Chairman of the Financial Stability Board (FSB) Andrew Bailey emphasizes the priority of assessing the role of stablecoins in payment and financial settlement.
Andrew Bailey stated that the FSB will focus on promoting stablecoin regulations and enhancing cross-border regulatory cooperation to mitigate the negative impact of stablecoins on the global economy.
MAIN CONTENT
The FSB prioritizes studying the impact of stablecoins in payment and settlement.
Mr. Bailey warns that internal stablecoins of investment banks could undermine monetary policy.
Strict regulations and international cooperation on stablecoins are increasingly being strengthened.
Why does the FSB prioritize the assessment of stablecoins in payment and settlement?
Commissioner Andrew Bailey, FSB Chair since July 2023, emphasizes that assessing stablecoins is a priority to ensure global financial stability. The FSB has issued a stablecoin management framework since 2021 to prevent risks affecting the global economy, while also promoting the enforcement of these regulations ahead of the G20 Summit.
"Assessing the role of stablecoins in payment and settlement systems will be a focus for the FSB to control the impact on the global economy."
Andrew Bailey, FSB Chair, July 2023
Previously, in 2022, the FSB launched an in-depth study on the risks of stablecoins applied in emerging markets, helping to direct appropriate management policies and prevent systemic impact.
How do stablecoins developed by investment banks impact monetary policy?
According to Andrew Bailey in an interview with The Times, stablecoins developed by major investment banks could undermine the ability to create credit and effectively conduct monetary policy. This affects control over the money supply and macroeconomic stability.
"Stablecoins developed internally within the investment banking sector pose a risk of reducing effectiveness in credit creation and monetary policy impact."
Andrew Bailey, FSB Chair, July 2023
As the stablecoin market continues to grow, global regulators need to continue monitoring and implementing appropriate control mechanisms to ensure transparent and sustainable financial operations.
What is the current state and global effort in managing stablecoins?
The stablecoin market is experiencing exceptional growth, while regulators continue to work closely to establish an effective legal framework. The U.S. Congress recently passed the GENIUS Stablecoin Act, demonstrating a commitment to stricter regulation of stablecoins.
The FSB also calls for enhanced international cooperation to manage risks and promote transparency in stablecoin operations, an important step to protect the global financial system from potential risks.
Frequently Asked Questions
What is a stablecoin and why does it need regulation?
Stablecoins are a type of cryptocurrency pegged to a stable value, requiring regulation to avoid risks of financial instability and to protect investors as recommended by the FSB.What role does the FSB play in managing stablecoins?
The FSB establishes a global legal framework and promotes policy cooperation to control risks from stablecoins to the global economy.Why are internal investment bank stablecoins a threat?
They can reduce the effectiveness of credit creation and monetary policy impact, causing instability in the financial system.What is the GENIUS Stablecoin Act?
It is a new legal document from the United States aimed at enhancing the management of stablecoin operations and risks in the market.What steps has the FSB taken to manage stablecoins?
The FSB has issued management frameworks since 2021 and has conducted risk research in emerging markets while promoting global regulation.
Source: https://tintucbitcoin.com/fsb-chu-tich-nhan-manh-stablecoin-g20/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news on the cryptocurrency market and not miss any important information!
