Coinspeaker
Financial Stability Institute Urges Global Consistency in Stablecoin Regulation

The Financial Stability Institute (FSI) has called for a global unified regulatory approach to stablecoins, warning that inconsistencies in supervision could threaten financial stability. In a report published on April 9, 2024, the FSI emphasized the need for countries worldwide to adopt the same regulation approach to issuing and using stablecoins.

Stablecoin Adoption

The FSI was established by the Bank for International Settlements and the Basel Committee on Banking Supervision to contribute to international discussions on various policy issues.

According to its latest report on stablecoin regulations, national and international financial regulators are responding positively to the adoption of stablecoins because they can maintain stability in the face of market turmoil.

Despite the growing acceptance of the asset class, the FSI report pointed out that different jurisdictions have varying definitions and categorizations for stablecoins, which could pose risks to financial stability.

The report also noted that countries around the world are implementing comprehensive suites of measures aimed at mitigating the risks associated wi...