The organization’s chair, Andrew Bailey, stressed that cross-border oversight mechanisms for stablecoins remain underdeveloped. According to an FSB survey, only 11 of 28 jurisdictions have completed the development of a regulatory framework for stablecoins. The organization is concerned about the impact on traditional markets of the withdrawal of token reserves from bank deposits. In particular, the FSB highlighted the risks of a concentrated withdrawal from a single custodian when funds are held across different jurisdictions.
Bailey also called on G20 members to adopt the FSB’s recommendations on the use of AI in the financial sector. These cover development, implementation, cybersecurity, and risks related to third-party services.