Meeting in Washington, D.C., on Thursday, 17 October, and Friday, 18 October, G20 finance ministers and central bank governors are discussing risks to financial stability, including the thorny issue of stable cryptocurrencies (‘stablecoins’).
The financial watchdog for the 20 major world economies (G20), the Financial Stability Board (FSB) is expected to submit a note to them on this subject. In a letter dated 13 October, it already set the tone by warning of the risks that these new monetary projects may pose to financial stability.
In the past, the FSB judged that cryptoassets did not pose a threat to global financial stability at this stage but, at the same time, recommended remaining vigilant as to their future developments (see EUROPE 12065/4).
Nevertheless, it notes in the letter that introducing global stablecoins could pose numerous challenges not only for financial stability but also in terms of consumer protection, data protection, money laundering, fair competition, and even appropriate legal basis.
It is worth noting that the letter refers to the G7 working group on stablecoins (see EUROPE 12279/12) in response to Facebook’s Libra cryptocurrency (see EUROPE 12277/24).
In its interim report, the group emphasised that stablecoins should not be allowed to circulate in the EU until the legal, regulatory, and supervisory challenges and risks have been addressed (see EUROPE 12299/11).
The G7 working group will send its final work to the G20. The FSB indicates that it has formed its own working group to examine these issues and assess the need for a multilateral response. It is expected to submit an advisory report to G20 finance ministers in April 2020 prior to the final report expected in July 2020. (Original version in French by Marion Fontana)