- FSB insists on stablecoin regulations
- Facebook forced to defer launch of Libra Stablecoin
The Financial Stability Board (FSB) of G20 in its most recent release has reiterated the importance of global stablecoins regulations.
This recent report follows the antecedent of its earlier report where it had elucidated on the standards of what a stablecoin should be.
The board believes that nations can improve stablecoin regulations by cooperating, sharing vital information, and coordinating their activities so that the regulations would cut across all of the nations.
FSB further clarified that all global stablecoins must make sure that they follow all of the stated standards and make provisions of how to protect against risks before they can start their operations.
Furthermore, a roadmap of implementing the stablecoin regulations is expected to have been completed by December 2021. And member nations are expected to have fully implemented the regulations by 2022 and carry out a yearly review on a needs basis.
Why stablecoin regulations is a must
Upon the fact that the crypto asset, stablecoin, has been enjoying a wide acceptance by some sectors of the masses, countries had resisted imposing any regulations on the sector until Facebook made it known of its intention to release the Libra stablecoin.
Facebook was forced to shift the launch date of the stablecoin because it faced some resistance by the regulatory body. Facebook had made it clear that the coin was only to be used across only its platform and had made it known that it would set up a non-profit to oversee the workings of the stablecoin.
Upon all of these reasons stated by Facebook, the G7 stood staunchly against the coin’s establishment unless the stablecoin met all of the regulatory standards governing its legal framework and oversight requirements.
However, countries like Japan, South Korea and some European countries have began testing the possibility of having a Central Bank Digital Currency (CBDC).