FSB Recommends Stablecoin (Libra) Safeguards as G7 Continues Blockade

The Financial Stability Board (FSB) recommended on Tuesday that governments closely regulate "global stablecoin" projects to keep those privately issued currency competitors from disrupting the world economy.

FSB unveiled 10 "recommendations" for regulating stablecoin data safeguards, contingency plans, governance frameworks and other apparent pain points in its report.
As the nongovernmental group's broadly worded, non-binding proposals still need tailoring for specific jurisdictions, the report underscores how far prospective stablecoin issuers still have to go.
The G7 economic bloc – U.S, Canada, Japan, Germany, France, Italy and Britain – also reiterated Tuesday that it will stonewall any "global stablecoin project" that tries to launch before clearing regulators' strict (and evolving) scrutiny.
Reuters first reported on the G7's draft statement.
Facebook-backed libra is undoubtedly the best known stablecoin initiative. It is also the most frequent target of regulators' ire, often blastied by name. Here, however, officials appeared to focus on global stablecoins overall, never once specifically mentioning libra.
The Libra Association has already made major concessions in past attempts to calm regulators' concern. In April, the Association ditched plans to back its not-yet-launched stablecoin with a basket of national reserve currencies.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Danny Nelson

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.

10 Years of Decentralizing the Future