Stablecoins could be forced to centralize issuance and major crypto platforms broken up under plans put forward by the Financial Stability Board (FSB) Tuesday.
The Financial Stability Board, a watchdog agency and standard setter for the global financial system supported by central banks and finance ministries, wants to see a comprehensive international rulebook in the aftermath of recent crypto market turmoil, taking aim at conflicts of interest in multi-faceted operations and algorithmic stablecoins like the now-collapsed terraUSD.
“The current ‘crypto winter’ has reinforced our assessment of existing structural vulnerabilities in these markets,” Klaas Knot, the Dutch central banker who chairs the FSB, said in a letter to the finance ministers of the world’s 20 biggest economies.
He was referring to FSB concerns over liquidity mismatches, high leverage and inappropriate business models in the highly connected crypto ecosystem.
“This turmoil has once more underlined the need for a...
Your content is great. However, if any of the content contained herein violates any rights of yours, including those of copyright, please contact us immediately by e-mail at media[@]kissrpr.com.
INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...