The Financial Stability Board (FSB) will focus on evaluating the function of stablecoins in facilitating transactions, as stated by its chair, Andrew Bailey, in a letter to the G20. Bailey, who also serves as the governor of the Bank of England, emphasized the importance of implementing the FSB's existing stablecoin guidelines and tracking progress across different regions, particularly with the upcoming G20 meeting. In 2021, the FSB proposed regulatory measures to mitigate the potential risks associated with stablecoins, which have gained significant traction globally. The organization aims to further investigate the challenges posed by stablecoins, especially in emerging economies where adoption rates are higher.
Bailey has also expressed concerns about the potential consequences of global investment banks creating their own stablecoins, citing the potential to undermine credit creation and monetary policy. As regulators worldwide increasingly prioritize stablecoins, the US Senate has passed a stablecoin bill, and the market continues to experience significant growth.