Bank for International Settlements Releases Executive Summary of Global Stablecoin Recommendations

cryptonews.com:

The Bank for International Settlements (BIS) released recommendations for the regulation, supervision, and oversight of global stablecoin arrangements in a February 29 executive summary.

The international financial institution acknowledged the potential of stablecoins to enhance the efficiency of financial services, but they also highlighted the possibility of the assets generating risks to financial stability.

Defining global stablecoins (GSC) in part as a stablecoin with “an existing or potential reach and use across multiple jurisdictions and that could become systemically important,” the summary listed ten key recommendations for arrangements to “maintain a stable value relative to a specified asset.”

Recommendations from BIS included comprehensive oversight of GSC activities and functions, cross-border cooperation, coordination, and information sharing, as well as creating authoritative risk management frameworks.

The BIS recommended that authorities collaborate across domestic and international levels “to encourage consistency of regulatory and supervisory outcomes.”

The executive summary further recommended that authorities maintain “readiness to regulate and supervise global stablecoin arrangements” while emphasizing “conformance with regulatory, supervisory, and oversight requirements” prior to commencing operations.

“Authorities should have and utilize the appropriate powers and tools, and adequate resources, to comprehensively regulate, supervise and oversee a GSC arrangement and its associated functions and activities, and enforce relevant laws and regulations effectively,” the executive summary read. “In addition, these recommendations emphasize a technology-neutral approach that prioritizes underlying