How Global Stablecoins Can Promote Financial Stability in the World By Cointelegraph

How Global Stablecoins Can Promote Financial Stability in the World

How Global Stablecoins Can Promote Financial Stability in the World

In the past year, three major financial oversight bodies have voiced concerns about threats to financial stability purported to be posed by stablecoins. While acknowledging the potential for enhanced payments efficiency, reports from the Bank for International Settlements, the United States Federal Reserve and, most recently, from the Financial Stability Board all emphasize numerous risks under the banner of “financial stability.” The concern is with global stablecoins, which the FSB defines as having “potential reach and adoption across multiple jurisdictions and the potential to achieve substantial volume.” The FSB report included a glossary of definitions for key terms, although none was provided for “financial stability.”

The simplest way to conceive financial stability is as an absence of instability. The 2007–2008 global financial crisis, or GFC, marked the epitome of modern financial instability. It was in response to this crisis that G-20 leaders established the Financial Stability Board in 2009. Hosted and funded by the BIS, the FSB monitors the global financial system, coordinating the work of domestic financial authorities and other global bodies. Its stated objective is to “address vulnerabilities affecting financial systems in the interest of global financial stability.” Preventing another GFC-like event is presumably the main purpose of this body.

Continue Reading on Coin Telegraph

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link


Leave a Reply

Your email address will not be published. Required fields are marked *

About us

InvestLab is a financial services technology company focused on the global trading market. Founded in 2010 in Hong Kong, the company develops trading, market data, and social research products that enable individual investors and small to mid-size brokers to access global markets. We provide brokers and financial institutions cross border capabilities for retail investors into 43 markets globally.