BIS Takes the Lead: Global Stablecoins Under Scrutiny The Bank for International Settlements (BIS) has just dropped a
must-read executive summary on global stablecoins, outlining key recommendations for their regulation and oversight.
While acknowledging the potential of stablecoins to revolutionize finance, BIS also raises a cautionary flag, stressing the need to address the
risks they pose to financial stability.
Defining global stablecoins as those with a
wide reach across borders and potential systemic importance, BIS puts forth ten recommendations to ensure they maintain a
steady value relative to an underlying asset.
Collaboration is key! BIS calls for enhanced
cross-border cooperation, coordination, and information sharing among authorities to foster regulatory consistency and effective supervision.
Authorities are urged to be fully equipped with the right powers, tools, and resources to regulate and oversee these arrangements, while taking a
technology-neutral approach that focuses on activities and risks.
As "the bank for central banks," BIS takes its role seriously in promoting monetary and financial stability through international cooperation. This latest move aligns with the G20's call for a closer look at stablecoin regulation back in 2019.
Originally published in October 2022, these updated recommendations reflect BIS's ongoing commitment to shaping a
consistent and effective regulatory framework for the brave new world of stablecoins.
