The Financial Stability Board (FSB), made up of central bankers and financial regulators from the G20 countries, warned that stablecoins are not stable.
by the Financial Stability Board October 11 In a report published on , important statements were made on stablecoins and cryptocurrencies. G20 The Financial Stability Board, which is composed of central bankers and financial regulators in their countries, to regulate cryptocurrencies in this detailed report published. in high-level recommendations found.
The report states that currently no stablecoin has been recognized by central bankers of the world’s largest economies. does not meet the standards set for the digital asset category specified. However, any stablecoin the promise of price stability It was underlined that it does not have reliable mechanisms to support it.
The FSB report specifically highlighted the following points about stablecoins:
There are doubts as to how most stablecoins can maintain their prices under market stress. These stablecoins allow arbitrage activities of market participants and rely heavily on them. The long-term sustainability of this remains unclear.
According to the FSB, the weakness of stablecoins in long-term support of a stable fixed price under adverse financial conditions raises questions.
Although it has no effect on changing the law, it is known that the Financial Stability Board is listened to seriously by many central banks and policy makers. According to commentators, this report once again reflects these institutions on stablecoins and cryptocurrencies. to think through seems likely to push.