Facebook’s plans to launch its cryptocurrency Libra this year has more than a few agencies in the European Union and the United States wondering what to do. While government bodies around the world are working to better understand crypto, regulations and laws pertaining to stablecoins aren’t being implemented quickly enough, according to a global finance watchdog.
In a letter to finance ministers and central bank governors from the G20 meeting in Riyadh this week, Financial Stability Board (FSB) Chair Randal Quarles voiced his concerns regarding how quickly digital currencies are affecting the global 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.”
Regulatory response to cryptocurrency around the world
The FSB is considering a public consultation on such regulations in April to evaluate the benefits and risks of stablecoins. Unregistered crypto companies continue to operate in Europe, while some exchanges in Brazil have been forced to shut down due to fines brought on by regulatory enforcement.
Consisting of regulators, bankers and government officials from the G20 countries, the FSB was established in 2009 as an early warning system in the event of another potential global financial crisis.