The Financial Stability Board (hereinafter referred to as FSB) is mainly responsible for coordinating the work of national financial authorities and international standard-setting institutions at the international level, and formulating and promoting the implementation of effective regulatory policies for financial stability.
Most recently, the Financial Stability Board (FSB) asked finance ministers around the world to step up efforts to create a regulatory framework for cryptocurrencies and other innovative digital payment systems.
Cryptoassets and their underlying blockchain technology have impacted the financial world in a big way. As a result, many business leaders around the world are now panicking as they fear digital technologies have gained such momentum that they could eventually disrupt financial markets as we know them.
This week, FSB chairman Randal K. Quarles, Fed governor and vice chairman for supervision, implored regulators to pay more attention to the impact of cryptocurrencies and the banking industry.
Indeed, Quarles noted that regulators have failed to keep up with the rapid developments in the payments industry, writing in a February 18, 2020 letter to finance ministers and G20 central bankers:
Technology is changing the nature of traditional finance. The non-bank sector has grown and requires greater understanding and coordination among regulators, there are pressures that could fragment the market, and important regulatory issues require attention.
Quarles highlighted the pace of technological development in the crypto payments space and the emergence of stablecoins, and he ensured that the FSB is determined to “accelerate the development of the necessary regulatory and supervisory responses to these new instruments.”
In the letter, Quarles committed to releasing a draft report on these regulatory issues in April 2020.
In addition, Quarles believes that cryptocurrencies used as payment substitutes may become global systems, "not least because they may satisfy needs that existing cross-border payment systems cannot."
Recognizing the importance of implementing efficient and inclusive payment services for global growth, Quarles informed the Saudi G20 presidency to ask the FSB to lead and prepare a new roadmap for improving cross-border payment systems.
In addition, as early as a year ago, the FSB issued a report stating that Bitcoin and other cryptocurrencies do not pose a threat to the world economy, but should be monitored as the market "continues to develop rapidly."
“The FSB has assessed the financial stability risks posed by the rapid growth of crypto-assets, and its preliminary assessment is that crypto-assets do not presently pose a risk to global financial stability,” the report said.
The original text comes from bitcoinist, compiled by the Bluemountain Labs team, the English copyright belongs to the original author, please contact the compiler for Chinese reprint.
The original text comes from bitcoinist, compiled by the Bluemountain Labs team, the English copyright belongs to the original author, please contact the compiler for Chinese reprint.
