{"id":15584,"date":"2024-07-26T15:19:21","date_gmt":"2024-07-26T12:19:21","guid":{"rendered":"https:\/\/forklog.com\/en\/fsb-warns-of-stablecoin-risks-for-emerging-economies\/"},"modified":"2024-07-26T15:19:21","modified_gmt":"2024-07-26T12:19:21","slug":"fsb-warns-of-stablecoin-risks-for-emerging-economies","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/fsb-warns-of-stablecoin-risks-for-emerging-economies\/","title":{"rendered":"FSB Warns of Stablecoin Risks for Emerging Economies"},"content":{"rendered":"<p>The adoption of global stablecoins in emerging economies entails significant financial risks and regulatory challenges, according to a <a href=\"https:\/\/www.fsb.org\/2024\/07\/cross-border-regulatory-and-supervisory-issues-of-global-stablecoin-arrangements-in-emdes\/\">report<\/a> by the <span data-descr=\"Financial Stability Board\" class=\"old_tooltip\">FSB<\/span> under the G20.<\/p>\n<p>Analysts highlighted the growing popularity of &#8220;stablecoins&#8221; in these countries, citing limited access to banking services, large remittance flows from developed nations, and the volatility of national currencies as reasons.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;The collapse and depegging of some stablecoins following the onset of cryptocurrency market turmoil in 2022 underscores the potential fragility of assets that are not properly designed and regulated,&#8221;<\/em> the report states.<\/p>\n<\/blockquote>\n<p>The instability of tokens poses significant risks for emerging economies, where oversight capabilities are often limited, the specialists emphasized.<\/p>\n<p>Experts listed several key issues associated with the implementation of stablecoins:<\/p>\n<ul class=\"wp-block-list\">\n<li>increased potential for illicit financing;<\/li>\n<li>data privacy concerns;<\/li>\n<li>cybersecurity risks;<\/li>\n<li>threats to financial integrity;<\/li>\n<li>the need to enhance consumer and investor protection.<\/li>\n<\/ul>\n<p>Stablecoins can also disrupt market integrity, fiscal, and overall macroeconomic stability.<\/p>\n<p>The mentioned risks are global in nature. However, emerging economies are most vulnerable due to barriers to implementing effective regulatory measures.<\/p>\n<p>The report&#8217;s authors recommend that policymakers and supervisory bodies establish a robust legal framework to facilitate cross-border cooperation. They also advised enhancing local capabilities for regulating &#8220;stablecoins.&#8221;<\/p>\n<p>Earlier, Paxos introduced the stablecoin Lift Dollar, which offers holders &#8220;risk-free&#8221; yields of around 5%. The first market will be Argentina, known for chronic currency devaluation and high inflation.<\/p>\n<p>Back in July 2023, the FSB developed recommendations for a global regulatory framework for digital assets. Later, G20 member countries approved the proposals.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The adoption of global stablecoins in emerging economies entails significant financial risks and regulatory challenges, according to a report by the FSB under the G20. Analysts highlighted the growing popularity of &#8220;stablecoins&#8221; in these countries, citing limited access to banking services, large remittance flows from developed nations, and the volatility of national currencies as reasons. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":15583,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1324,36,807],"class_list":["post-15584","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-g20","tag-regulation","tag-stablecoins"],"aioseo_notices":[],"amp_enabled":true,"views":"13","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/15584","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=15584"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/15584\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/15583"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=15584"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=15584"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=15584"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}