Responding to a request from G20 heads of state in 2019 and renewed focus earlier this year, the FSB has outlined its approach to global stablecoins (GSCs) of which Facebook’s Libra is the most prominent, if troubled, example. The governing body of global banking, securities, and insurance regulators has identified many issues of initial concern with Libra and other GSCs – e.g., liquidity risk governance, how stablecoin values will be derived, reserve requirements – but left many others – e.g., standards for wholesale GSCs, impact on global finance and emerging market economies (EMEs), and monetary-policy impact – largely unaddressed.
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