The Financial Stability Board warns G20 to pay attention to the risks of cryptocurrencies and stablecoins

ChainCatcher news, according to market news, the Financial Stability Board (FSB) has submitted a mid-term report to the G20, currently chaired by South Africa.

FSB Chair Andrew Bailey highlighted four key topics in a brief letter to G20 finance ministers and central bank governors: cross-border payments, crypto assets and stablecoins, implementation monitoring, and artificial intelligence, with cross-border payments and crypto assets given top priority. Last week, the FSB pointed out that although most work in the area of cross-border payments has been completed, the target set for 2027 remains difficult to achieve. In fact, progress in this area has been quite limited. In the realm of crypto assets, both the letter and the accompanying report emphasized the growth trends of the industry and its increasingly close integration with the traditional financial system. Therefore, any shocks in the crypto asset sector are likely to impact financial stability.

Although many jurisdictions are planning (93%) or have already established (88%) regulatory frameworks for crypto assets and stablecoins, these frameworks often focus on anti-money laundering and sanctions compliance rather than issues aimed at protecting financial stability.