The Bank for International Settlements has issued recommendations for the regulation, supervision, and oversight of Global Stablecoins  In response to the increasing prominence of global stablecoins (GSCs) and their potential implications for financial stability, the Bank for International Settlements (BIS) has introduced a comprehensive set of recommendations aimed at regulating and supervising these widely adopted digital assets. In 2019, the Group of Twenty (G20) mandated the Financial Stability Board (FSB) to examine regulatory issues raised by GSC arrangements and to advise on multil ..read more

U.S. Stablecoin Bill Takes Significant Step Despite Partisan Clash and White House Opposition In a noteworthy development within the U.S. Congress, a long-awaited stablecoin bill made significant progress as it graduated from the House Financial Services Committee. However, the advancement of the Republican-backed bill was marred by a partisan clash and objections from the White House, leaving the committee chair, Patrick McHenry (R-N.C.), lamenting the missed opportunity for a bipartisan deal. The Clarity for Payment Stablecoins Act, introduced by McHenry, represents a substantial stride ..read more

New Crypto Bill Targets Stablecoins: Senators Propose Stringent Regulations for Digital Currencies A new crypto oversight bill reintroduced by Senators Cynthia Lummis and Kirsten Gillibrand is making waves in the U.S. Senate. The bill proposes that crypto exchanges be overseen by the Commodity Futures Trading Commission (CFTC) rather than the U.S. Securities and Exchange Commission (SEC). Additionally, it calls for all stablecoin issuers to be regulated depository institutions. This bill represents a significant effort to establish U.S. regulation for the crypto industry and addresses the d ..read more

Same Activity, Same Risk, Same Regulation: FSB's Principle for Ensuring Fairness in Stablecoin Sector In preparation for the upcoming G20 Finance Ministers and Central Bank Governors meeting in India, Klaas Knot, Chair of the Financial Stability Board (FSB), has highlighted the recent banking turmoil and the FSB's commitment to learning valuable lessons from these events. In a letter addressed to the G20 officials, Knot emphasised the importance of addressing risks associated with crypto-assets and global stablecoin arrangements, as well as providing updates on efforts to tackle climate-rel ..read more

EU Banking Authority Calls on E-money Token Issuers to Prepare for MiCA Rules Ahead of Schedule Issuers of e-money tokens (Stablecoins) tied to fiat currency and of asset-reference tokens linked to other products such as gold have been advised to proactively prepare for the forthcoming regulations set by the European Union, according to the European Banking Authority (EBA). Although the rules of the Markets in Crypto Assets (MiCA) framework will officially come into effect in June 2024, the EBA emphasised the importance of early preparation to protect consumers and avoid disruptions for com ..read more

Cross-Border Payments Made Easy: Stablecoin Use to Dominate Global Transactions, Says Juniper Research According to a recent study by Juniper Research, the value of payment transactions made with stablecoins is predicted to surpass $187 billion by 2028, a significant increase from $53 billion in 2023. The study, titled "CBDCS & STABLECOINS: KEY OPPORTUNITIES, REGIONAL ANALYSIS & MARKET FORECASTS 2023-2030," highlights the rapid progress of stablecoins in the cross-border market, where they offer an alternative to slow, expensive, and difficult-to-track existing payment systems. Cro ..read more

RBI Deputy Governor Calls for CBDC Revolution to Safeguard Policy Sovereignty Reserve Bank of India (RBI) Deputy Governor T Rabi Sankar expressed India's concerns about stablecoins, emphasising their potential threat to policy sovereignty. In a speech at a banking event, Sankar called for a global financial system based on central bank digital currencies (CBDCs) issued by each country for settling global payments. He highlighted the importance of CBDCs in maintaining financial stability and independence, stating, "We should ideally aim for a global financial system which rests on central ba ..read more

Aave Community Votes on Gho Stablecoin Integration: Unlocking New Possibilities Aave DAO, the decentralised autonomous organisation behind the popular lending and borrowing platform Aave, is set to vote on the deployment of the long-anticipated Gho stablecoin on the Ethereum blockchain. The proposal, outlined in an Aave Improvement Proposal (AIP), aims to introduce Gho (GHO), a U.S. dollar-pegged stablecoin, through the use of "facilitators" on Aave version 3 (V3). Gho, an algorithmic stablecoin, has been operating smoothly on the Ethereum blockchain's Goerli testnet since February, encoun ..read more

BOE Governor Stresses Potential for Stablecoins in Evolving Digital Money Landscape In a speech delivered on July 10, Bank of England (BOE) Governor Andrew Bailey shared his perspective on digital currencies, highlighting the potential of "enhanced digital money" while expressing reservations about cryptocurrencies and stablecoins. Bailey emphasised the need for regulatory oversight, stability, and usability in the evolving financial landscape. While acknowledging the limitations of cryptocurrencies and stablecoins in meeting the criteria of singleness of money and settlement finality, Bai ..read more

Circle Explores Issuing Stablecoin in Japan, Seizing New Opportunities in the Evolving Regulatory Landscape Circle, the renowned US-based financial services company and issuer of the popular stablecoin USDC, is now considering the possibility of launching a stablecoin in Japan. This move comes in response to the updated regulatory environment in the country, which now permits licensed financial institutions to issue stablecoins. Japan, with its attractive market potential and increasing utilisation of stablecoins in cross-border trade, presents an appealing opportunity for Circle's expansio ..read more