FSB chair Quarles says rise of stablecoins could pose regulatory challenges
October 4, 2019, 6:12AM EDT
1 min read
Randal K. Quarles, the chair of the Financial Stability Board (FSB), has said that the potential rise of stablecoins could cause regulatory challenges.
“Although there is a small risk to financial stability today, there is no doubt the potential scale of stablecoins and other crypto-assets yet to emerge may pose regulatory challenges,” Quarles said at the European Banking Federation's summit in Belgium on Thursday.
Quarles, who is also a governor and vice-chairman of the supervision department at the U.S. Federal Reserve, further said that the FSB has had discussions about regulating and supervising stablecoins and crypto-assets.
“We have already begun work to identify which regulations exist that apply to stablecoins in our jurisdictions, and once that assessment is complete, we will report to the G20 on any appropriate actions that need to be taken to ensure that financial stability is not negatively affected by their [stablecoins’] introduction,” said Quarles.
The official made similar remarks earlier this year, saying that the emergence of crypto-assets could be a challenge for the agency, but that makes "the goal of a robust framework all the more important."