Central banks have set out to regulate cross-border stablecoins with a common approach, adding that more rules may later be needed to ensure stability.
At the moment, existing national rules do not fully cover stablecoins like Facebook’s planned Libra, the Financial Stability Board (FSB) said in a statement. Moreover, regulators should ensure that global stablecoins are fully accountable, keep data safely, and have effective safeguards against cyber-attacks and money laundering.
The board said it will take ‘appropriate actions’ to ensure implementation of the guidance to avoid regulatory gaps that could undermine financial stability, according to Reuters. The FSB, which groups central banks and financial regulators from the Group of 20 Economies (G20), had put a draft version of its recommendations to public consultation in April 2020. Then it had agreed that stablecoins could bring efficiencies to cross-border retail payments, which tend to be slow and expensive.
Regulators for bank capital and anti-money laundering will report by December 2021 on whether rule changes are needed. A review of how stablecoins are being regulated will be completed by July 2023, the FSB added.
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