The Bank for International Settlements (BIS) has released guidelines for the regulation, supervision, and monitoring of global stablecoin arrangements.
The organization described GSC as widely used “stable coins” with potential reach and usage across multiple jurisdictions.
“GSCs have the potential to become systemically important in one or many countries,” the document states.
The report outlines key recommendations aimed at mitigating financial stability risks posed by GSCs both domestically and internationally.
The proposals also aim to support innovation and provide jurisdictions with flexibility in implementing domestic approaches.
Some of the key recommendations urge authorities to prepare for the regulation and oversight of global stablecoin arrangements, with a focus on cross-border cooperation, coordination, and information sharing.
The report identifies priorities for supranational authorities to ensure effective risk management systems for GSCs, “particularly regarding operational resilience, cybersecurity safeguards, and AML/CFT measures, as well as compliance.”
The authors also addressed issues of data storage and access, redemption rights, and prudential requirements.
The BIS summary notes that while stablecoins have the potential to enhance the efficiency of financial services delivery, “they may also pose threats to financial stability.”
“The recommendations aim to promote consistent and effective regulation and supervision of GSCs and tokens that could potentially achieve this status in different jurisdictions. A technology-neutral approach is emphasized, prioritizing core activities and risks,” the organization concluded.
In October 2023, BIS developed a global cryptocurrency monitoring system.
Earlier, the bank’s head, Agustín Carstens, urged governments worldwide to establish a regulatory framework for the implementation of central bank digital currencies.