FSB Warns G20 Stablecoin Gaps Could Spread Stress to Traditional Markets
Photo: TokenPost
The Financial Stability Board warned G20 finance ministers and central bank governors that immature cross-border stablecoin oversight could transmit stress into banks and traditional financial markets. FSB Chair Andrew Bailey said crisis-management arrangements for stablecoins also remain underdeveloped. A run could force issuers to sell reserve assets while prompting users to withdraw deposits from banks, creating pressure beyond the crypto market. Stablecoins involving multiple issuers face an additional vulnerability: redemption requests could become concentrated on a single issuer, increasing pressure during a period of market stress.
Source: TokenPost
