Share this article
Many Existing Stablecoins Won’t Meet Forthcoming Global Standards: FSB
The international standard setter's recommendations for regulating crypto and stablecoins are set to be released in July 2023.
Updated Feb 21, 2023, 3:06 p.m. Published Feb 20, 2023, 9:00 a.m.
Make us preferred on Google
Many existing stablecoins would not meet the “high-level” recommendations soon to be set by global standard setters like the Financial Stability Board (FSB), its chair, Klaas Knot, said on Monday.
The FSB’s upcoming guidance targets the strengthening of stablecoin governance frameworks, redemption rights and stabilization mechanisms, Knot said in a letter to G-20 finance ministers and central bank governors.
STORY CONTINUES BELOW
According to its work plan for 2023 published on Monday, the FSB is set to finalize its recommendations for regulating crypto and stablecoins by July. Stablecoins are cryptocurrencies pegged to the value of other assets like the U.S. dollar or the euro.
Regulators around the world have been taking steps to oversee payments-focused stablecoins, most of which are backed by fiat currency reserves in the form of cash equivalents – or more infamously by unsecured short-term debt. While stablecoin issuers have made efforts to cut private debt out of their reserves and improve transparency, Knot’s message indicates these measures may not be enough.
In his letter, Knot added that many existing stablecoins wouldn’t meet the international norms set by payments or securities standard setters either.
In February 2022, the FSB warned that crypto risks to financial stability “could rapidly escalate.” Regulators around the world, including the FSB, have been increasing efforts to oversee the sector following last year’s many company collapses – including token issuer Terra and crypto exchange FTX.
Last week, the FSB said it will work with other standard-setting bodies to determine how decentralized finance (DeFi) should be regulated. It is also planning a paper with the International Monetary Fund (IMF) on regulatory issues associated with crypto.
Read more: Global Standard Setters Will Team Up to Tackle DeFi Regulation: FSB
More For You
Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.
What to know:
Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token.
The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.
More For You
El Salvador's central bank buys $50 million of gold as government keeps adding bitcoin
The bitcoin-friendly nation's central bank now holds over $360 million of the yellow metal, while the government, led by President Nayib Bukele, has bitcoin holdings worth $635 million.
What to know:
- El Salvador's central bank added $50 million of gold to its reserves on Thursday.
- The country also made its usual purchase of 1 bitcoin, bringing the government’s holdings to 7,547 coins, worth $635 million.
Top Stories
