FSB Chair: Stablecoins Can Make Legal Obstacles More Difficult
The chair of the Financial Stability Board, Randall Quarles, recently spoke about the rise in popularity stablecoins are having, including very prominent projects such as Libra. According to him, the future can have significant regulatory challenges because of these projects.
He talked about this issue during a recent presentation that happened at the European Banking Summit, which reunites in Belgium several important people in the sector.
Quarles affirmed that Libra may not have been released yet, but that it has certainly raised the public interest in the matter. According to him, this could spark a new scale of and scope to the stablecoin space and the community has to carefully consider which way to follow to achieve the best results.
The regulator is far from anti-Libra, though. He affirms that these assets bring a “small financial risk” but also acknowledges that there is potential to Libra and the other projects.
At the moment, both the G7 and the G20 are currently investigating stablecoins and the FSB was tasked with leading the initiative to understand these assets better and spearhead the regulatory changes.
You may not know, but the FSB was created at the same time that Bitcoin was. Both of them were a response to the 2008 global crisis and both aimed to ensure that an event like that would never actually happen again.
Because of this, the FSB deserves some credit on policing governments and private actors to reduce the potential for a future economic crisis that can cause devastating effects on the world. If it depends on the organization, stablecoins will definitely be tightly regulated.