Financial Stability Board (FSB)

🕰️ Throw back to last week It’s only in Washington DC – or perhaps Basel – that you get to see three FSB Chairs (and a Secretary General) together! Among the many events where FSB representatives participated: - G20 Finance Ministers and Central Bank Governors meeting - Institute of International Finance Annual Membership Meeting - DC Fintech Week - The Atlantic Council events - OMFIF Digital Monetary Institute’s High-level Roundtable FSB members also met to start thinking about work for the coming year – stay tuned for more!

Despite welcome progress, more needs to be done to ensure the sound regulation, supervision and oversight of crypto-assets and stablecoins at the global level. Based on the findings of our recent peer review looking at the implementation of our global crypto-asset framework, we have developed some recommendations to address outstanding issues and ensure the sound regulation, supervision and oversight of crypto-assets and stablecoins. Learn more: https://bit.ly/4n8pNDU #Crypto #Cryptoassets #Stablecoins #FinancialRegulation

🤝 Crypto-assets are increasingly interconnected with the traditional financial system. Financial institutions and retail investors are hoping to benefit from crypto markets. However, this interconnectedness means that that shocks in the crypto-asset ecosystem are more likely to spillover to the broader financial sector through various channels. 👔 For instance, investors are buying crypto exchange-traded products or equities of listed firms that hold large quantities of crypto-assets on their balance sheet. 🏦 Large global banks have increased their prudential exposures to crypto-assets and are offering crypto custody services. Many of them have announced plans to integrate stablecoins into payment and settlement services, issue their own stablecoins, or provide investment services for crypto-assets. Learn more in our report: https://bit.ly/4n8pNDU #Crypto #Stablecoins #CryptoCustody #CryptoETFs #CryptoPayments

Several milestones have been achieved under the G20 Roadmap for enhancing #CrossBorderPayments, but these efforts have not yet translated into tangible improvements for end users globally. 🌐 https://bit.ly/48nOp7M More must be done to translate the work completed at the international policy level into meaningful benefits for end users and to support economic growth. The key challenge now is that jurisdictions and private sector stakeholders, also beyond the financial sector, take the practical steps needed to enhance cross-border payments, which remains a priority for the G20.

The FSB delegation had a busy week at the WB-IMF Annual Meetings 👇

Many FSB members have expressed concerns about multi-jurisdictional stablecoins, i.e. stablecoins issued from multiple jurisdictions by the same or affiliate entities. 💸 Issuers of such stablecoins are trying to expand their business by proposing to clients a token that can be traded and redeemed in various jurisdictions, but is subject to different regulatory frameworks. ⚡ However, such schemes can introduce operational complexity, financial stability risks and regulatory challenges. 🙋 Box 5 in our report looks at this question: https://bit.ly/4n8pNDU #stablecoins #multijurisdictionalstablecoins

The resilience of the global financial system and its ability to safeguard economic stability makes it imperative that the #G20 financial regulatory reforms are implemented fully, consistently, and in a timely manner. Since the Global Financial Crisis in 2008, the FSB and standard-setting bodies, under the leadership of the G20, have advanced an ambitious programme of financial reforms. The first report from our strategic review of implementation monitoring outlines the progress made in implementing some of the most significant reforms. 🔗 https://bit.ly/4h7DFwF #FinancialReforms #ReformImplementation #GFC #FinancialStability #FSB #BaselIII #Resolution #OTCDerivatives #Compensation #NBFI

📈 The rapid evolution and growth of crypto markets underscores the importance of implementing the FSB recommendations for crypto-assets and global stablecoins. 📝 While crypto-assets and stablecoins are still not widely used in critical financial functions and services, linkages with the traditional financial system are growing. Some facts: ✔️ The total market value of crypto-assets has almost doubled in one year, reaching USD 4 trillion in early August. ✔️ Stablecoins have grown by almost three-quarters over the past year, to almost USD 290 billion: ✔️ Investors and large global banks’ exposures to crypto are increasing rapidly. ✔️Stablecoin issuers’ USD reserve holdings are now comparable to those from foreign governments or large money market funds. All this puts a premium on having sound regulation, supervision and oversight in place at the global level. ➡️ Read more in our report: https://bit.ly/4n8pNDU #Crypto #Cryptoassets #Stablecoins #CryptoTreasuryCompanies #CryptoETFs

❓Since our 2024 report looking at the financial stability implications of artificial intelligence (AI), how has the AI ecosystem developed? 💡Our report outlines practical steps to help financial authorities monitor AI adoption and address related vulnerabilities while fostering safe innovation. Key recommendations include: ✅ Collaborating with domestic stakeholders to formalise metrics and improve monitoring efforts ✅ Enhancing supervisory engagement with financial institutions to gain deeper insights into AI-related risks ✅ Leveraging AI tools to enhance monitoring capabilities and mitigate vulnerabilities ✅ Promoting data sharing across domestic and international regulators to strengthen oversight 🌐 Explore the full recommendations here: https://bit.ly/43k17Rv #AI #FinancialStability #Innovation #Supervision

Today, the FSB and the International Organization of Securities Commissions - IOSCO released the results of their respective peer reviews on the implementation of crypto-asset and stablecoin recommendations, covering financial stability, investor protection and market integrity. Learn more: 📘 FSB report: https://bit.ly/4n8pNDU 📕 IOSCO report: https://bit.ly/43hDY23