FSB published a report presenting the roadmap to enhance cross-border payments by providing a high-level plan that sets ambitious but achievable goals and milestones in the five focus areas. The focus areas of the roadmap involve committing a joint public- and private-sector vision to enhance cross-border payments; coordinating regulatory, supervisory, and oversight frameworks; improving existing payment infrastructures; enhancing data quality and straight-through processing; and exploring the potential role of new payment infrastructures, including the global stablecoin arrangements. FSB also published a report that presents high-level recommendations for the regulation, supervision, and oversight of global stablecoin arrangements, following an April 2020 public consultation. The global stablecoin arrangements are expected to adapt to new regulatory requirements as necessary, to adhere to all applicable regulatory standards, and to address risks to financial stability before commencing operation.
Within the cross-border payments roadmap, the focus area on exploring the role of new payment infrastructure will examine the scope for new multilateral platforms, global stablecoin arrangements, and central bank digital currencies to address the challenges that cross-border payments face, without compromising on minimum supervisory and regulatory standards to control risks to monetary and financial stability. The emergence of global stablecoins may challenge the comprehensiveness and effectiveness of the existing regulatory and supervisory oversight. Thus, FSB has agreed on the ten high-level recommendations that promote coordinated and effective regulation, supervision, and oversight of such arrangements to address any financial stability risks at the domestic and international levels. In addition to the final recommendations on stablecoin arrangements, FSB also published a note that summarizes the responses received to the consultation on global stablecoin arrangements and the resulting changes to the recommendations in the consultation paper.
The recommendations on global stablecoin arrangements support responsible innovation and provide sufficient flexibility for jurisdictions to implement domestic approaches. The recommendations call for regulation, supervision, and oversight that is proportionate to the risks and that follows the “same business, same risk, same rules” principle. The performance of some functions of a global stablecoin arrangement may have important impact across borders. The recommendations also stress the value of flexible, efficient, inclusive, and multi-sectoral cross-border cooperation, coordination, and information-sharing arrangements among authorities. Public consultations on the individual building blocks will take place at the appropriate points, to ensure transparency and accountability. FSB also agreed to the following further actions as a key building block of the roadmap to enhance cross-border payments commissioned by G20:
- Completion of international standard-setting work by December 2021
- Establishment or, as necessary, adjustment of cooperation arrangements among authorities by December 2021 (and as needed based on market evolution)
- At a national level, establishment or, as necessary, adjustment of regulatory, supervisory, and oversight frameworks, consistent with the FSB recommendations and international standards and guidance by July 2022 (and as needed based on market evolution)
- Review of implementation and assessment of the need to refine or adapt international standards by July 2023
- Press Release on Payments Roadmap
- Press Release on Stablecoin Recommendations
- Cross-Border Payments Roadmap (PDF)
- Recommendations on Stablecoins (PDF)
- Responses to Consultation on Stablecoins (PDF)
Keywords: International, Banking, Securities, Cross-Border Payments, G20, Roadmap, Stablecoins, Digital Currencies, CBDC, Regtech, PMI, CPMI, FSB
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