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BIS issues guidance on the regulation of stablecoins


The Bank for International Settlements (BIS) has published a report with guidance on the compliance of stablecoin mechanisms with international standards for payment, clearing and settlement systems.

Thus, the Committee on Payments and Market Infrastructure (CPMI) and the International Organization of Securities Commissions (IOSCO) presented the document for public consultations.

“This report marks significant progress in understanding the implications of the use of stablecoins for the financial system. And provides clear and practical recommendations on the standards they must meet to maintain its integrity”. Said Ashley Alder, chairman of the Board of IOSCO and CEO of the Hong Kong Securities and Futures Commission.

PFMI are applicable to agreements

The institution recalled that in 2019, the Financial Stability Board (FSB) of the G20 group conducted work to study the global impact of the mechanisms of “stable coins” and presented recommendations on their regulation.

In addition, a preliminary analysis conducted by CPMI and IOSCO as part of the October 2020 FSB report showed that the Principles of Financial Market Infrastructure (PFMI) are applicable to stablecoin agreements. In the published document, the BIS structures confirmed this definition. Moreover, the report provided explanations and interpretations of the application of existing standards to stablecoins.

“This consultation document is part of the permanent obligations of the international regulatory community to ensure the principle of “the same risk, the same regulation”. To identify potential risks and help develop appropriate regulations to protect financial stability”. Said CPMI Chairman and Deputy Governor of the Bank of England John Cunliffe.

Two-thirds of financial institutions are focused on stablecoins

Earlier, BIS noted that many central banks are studying digital assets from the point of view of regulation. But they are most interested in stablecoins.

“Most central banks are currently exploring various options for using CBDC. In general, the survey indicates a transition from conceptual research to experiments and pilot projects,” the document says.

Of the 60 central banks surveyed, approximately 60% are still in the early stages of research. Almost two-thirds of financial institutions are focused on stablecoins, studying their “impact on monetary and financial stability”.

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