In Mary Poppins the magical nanny tells the children in her charge that "a spoonful of sugar helps the medicine go down." In the spirit of helping the medicine of regulation go down, the FSB has published for consultation 1 10 high-level recommendations to address the regulation of global stablecoins. The FSB noted stablecoins "have the potential to enhance the efficiency of the provision of financial services, but may also generate risks to financial stability." The FSB's recommendations call for regulation, supervision and oversight that takes into account the evolution of global stablecoins.
The consultation paper represents an important opportunity for FinTech firms, regulators, governments officials, and academics to comment on the proper regulation of stanlecoins. The public consultation period closes on Wednesday July 15, 2020. The final recommendations will be published in October 2020.
Footnote
1 Addressing the regulatory, supervisory and oversight challenges raised by "global stablecoin" arrangements
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