Urged by the G-20, the Financial Stability Board (FSB) made a report on stablecoins. In the document, despite pointing out issues of improvement, the agency recognizes that stablecoins “can improve the efficiency of the provision of financial services”. For example, they can increase the efficiency of payments and promote financial inclusion, the FSB says.
In its analysis of regulatory and supervisory matters, the FSB lists some issues that stablecoins need to address so that regulators are not so reticent.
One of the points that stablecoins companies need to look at is liquidity. Thus, the FSB says it is essential “to choose and manage asset reserves”. This type of precaution helps to ensure more stability at the price of the currency.
For example, BRZ proved through external audit its funds held as collateral. However, tether, the market’s main stablecoin based in the dollar, has so far not gone through the process.
FSB wants international cooperation in the regulation of stablecoins
Other important factors are the governance and operation of the company. Good infrastructure is needed to ensure operations without delay, but also the privacy of users’ data. Also, the FSB says that clarifying who makes up the governance committee impacts the users’ confidence.
It is also necessary to ensure that applications and components that store access keys and where currency exchanges occur are safe. According to the text, it is crucial to ensure the services’ continuity even in case of instability.
The FSB also called for “effective cooperation, coordination and information sharing” among the countries’ authorities. After all, these are cross-border currencies. The European Central Bank (ECB) has already made a similar statement. In a study, the ECB said: “adequate, internationally coordinated regulation” was needed.
Stablecoin Alliance is created to expand the adoption of stablecoins
In the context of security and compliance, a group of five stablecoins founded the Stablecoin Alliance. The association intends to broaden the narrative of stablecoins in the crypto market. And precisely solve the issues that today concern the regulators.