The Bank for International Settlements (BIS) has released a new set of guidelines designed to regulate global stablecoins. Recognizing the potential risks to both domestic and international financial stability posed by the widespread use of these coins, the BIS is calling for strong oversight and supervision of global stablecoin arrangements.
The recommendations put forth by the BIS urge countries around the world to be prepared to regulate global stablecoins, with a specific focus on promoting cooperation and sharing of information across borders. In addition, the BIS is advocating for the implementation of risk management frameworks that address issues such as operational resilience, cyber security, anti-money laundering measures, and compliance with relevant laws and regulations.
Furthermore, the BIS is stressing the importance of data storage, access to data, redemption rights, and prudential requirements in effectively managing the risks associated with global stablecoins. While acknowledging the potential benefits that stablecoins can offer in terms of enhancing financial service efficiency, the BIS is also cautioning against the financial stability risks that they could potentially bring.
For more information, you can read about how the BIS is setting its strategy for 2024 with a focus on central bank digital currencies (CBDCs) and tokenization. Stay updated by following us on Google News.