G20 Central Bankers Warn Stablecoins Aren't 'Stable', Recommend Action Around Crypto Assets

Oct 11,2022
KingData News: No stablecoin currently meets the standards set for the digital asset category by central bankers of the world’s largest economies, and many stablecoins “do not have credible mechanisms to support their promise of price stability," a report issued by the Financial Stability Board concluded today. The FSB also cast doubt on how most stablecoins would be able to maintain their pricing under market stress, concluding that, “most stablecoins enable arbitrage activities of market participants and to a considerable extent rely on them,” and that it’s unclear how that would hold up under adverse financial conditions, “raising questions about the effectiveness of the stabilization mechanisms in supporting a stable price at all times.”
This index tracks global regulatory move targeted at cryptocurrency and blockchain industry.
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