The Financial Stability Board (FSB) has a plan for the next few years. They want to make rules for cryptocurrencies, international payments, and other important financial issues around the world.
The G20, a group of countries that work together on global economic issues, announced its goals for this year. The main goal is to use technology to make financial markets better, especially with digital money like cryptocurrencies and tokens.
The report says that it’s important for financial markets to be stable. But right now, they are getting riskier because interest rates are going up and there is not enough consistency.
This can also be seen in the crypto money market with problems that make it hard for countries to work together.
The plan shows that the organization will find and solve new problems in financial markets and keep an eye on possible issues with new technologies and financial services that are not banks.
A way to make international payments quicker.
Last year, the G20 and FSB focused a lot on making it easier to send money across borders. They worked together to create a plan and rules to reach their goals by 2027.
Together with the CPMI, the FSB promised to keep working this year on creating guidelines for everyone involved in the market.
“Actions led by the FSB include work on banks and non-bank supervision and work on data frameworks. The roadmap places importance on public-private sector partnerships, including the annual Payments Summit and Taskforce that were set up in 2023.”
FSB will release new rules on how to regulate cryptocurrencies.
The Board will give updates on the plan at different times during the year. The updates include making a report every year about specific goals.
Additionally, it wants to make more suggestions to help different payment systems work together across borders, and also to expand those suggestions to include global rules for both banks and other financial companies that are interested in this area.
This year, the FSB will use new ideas in crypto markets, tokenization, Artificial Intelligence (AI), and a global stablecoin that can be used in many places.
We started working on most of these things in 2023, but this year we will mainly focus on making a plan to use crypto assets and making rules for global stablecoins. This will help make the industry more consistent.
As the mainstream approach to tokenizing real-world assets increases, with investments by big traditional banks deploying blockchain technology, the board is expected to analyze the financial implications for the markets.
Similar work will also happen for AI solutions, cyber-attacks, reporting incidents, and the dangers of climate change for the financial market.
Last year, FSB gave advice to companies that use cryptocurrency and operate stablecoins. These rules say that companies should not mix the money belonging to their users with the company’s own money. Crypto companies need to tell authorities all the important information.
It also highlighted that stablecoins should have the same amount of money in reserve as they have in circulation to protect investors from losing money.
