FSB Publishes Analysis of Global Stablecoin Risks
Overview
The Financial Stability Board (FSB) published a document analyzing cross-border financial stability vulnerabilities and transmission channels related to global stablecoins (GSCs), as well as the benefits and limitations of monitoring indicators and data. It also identifies areas for continued FSB consideration to support implementation of the high-level recommendations issued in July 2023.
Key points
- The Financial Stability Board (FSB) published an analytical document.
- The subject is global stablecoins (GSCs) that are widely adopted and used across multiple jurisdictions.
- The FSB identifies areas for continued consideration.
Overview
On October 12, the Financial Stability Board (FSB) published “Global stablecoin arrangements: Cross-border vulnerabilities and financial stability monitoring.” The document covers global stablecoins (GSCs) that are widely adopted and used across multiple jurisdictions.
Details
The analysis covers cross-border financial stability vulnerabilities related to GSCs and their transmission channels. It also examines the benefits and limitations of indicators and data that can be used to monitor financial stability.
The document identifies areas for continued FSB consideration to support implementation of the “High-Level Recommendations for the Regulation, Supervision and Oversight of Global Stablecoin Arrangements” and other measures, issued in July 2023. The Bank of Japan article directs readers to the publication page on the FSB website and the original document (PDF) for more information.