Financial Stability Board Announces Enhanced Oversight of Stablecoins Ahead of G20 Summit

On the 20th, Andrew Bailey, Chair of the Financial Stability Board (FSB), released a letter to the leaders of various countries ahead of the G20 summit scheduled for the 22nd to 23rd, announcing enhanced monitoring of financial stability risks associated with the expanding role of stablecoins in payments and settlements.

Chair Bailey warned that discrepancies in regulatory and supervisory frameworks among countries could 'add a new layer of complexity and potential risk.' He emphasized that authorities need to carefully consider their regulatory frameworks to ensure that stablecoins can operate effectively and safely across borders, supporting safe and consistent innovation.