Are Stablecoins a Priority for Lawmakers?

• Facebook’s upcoming digital asset has seen many regulators pondering about the future of the stablecoin and what to do when it launches.
• Randal Quarles wrote in a letter to central bank governors concerns in regards to how fast cryptocurrencies are affecting the economy. 

Libra, Facebook’s upcoming digital asset has seen many regulators and lawmakers pondering about the future of the stablecoin and what to do when (if) it launches. This curiosity mainly comes from the United States and the European Union who want to get a better understanding of the laws and regulations of the crypto world. Stablecoins, in general, seem to be getting ignored...

Randal Quarles, the chairman for the Financial Stability Board, wrote in a letter to finance ministers and central bank governors concerns in regards to how fast cryptocurrencies are affecting the international economy while regulatory action struggles to keep up. 

“FSB members recognise the speed of innovation in the area of digital payments, including so-called ‘stablecoins’. We are resolved to quicken the pace of developing the necessary regulatory and supervisory responses to these new instruments.”

With its many regulators and government officials, the Financial Stability Board was established in 2009 as an ‘early warning system’ in the event of another global financial crisis like in ‘08.

The board is taking public consultation in consideration in regards to these regulations later this year to help evaluate both the benefits and risks of stablecoins. Unregistered crypto businesses continue to work in Europe but in Brazil, some are being forced to shutter because of fines brought on by regulatory enforcement. 

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!