G20: stablecoins threaten the financial system

The G20 stated that stablecoins threaten the global monetary system and financial stability, and asked the IMF to assess the risks associated with them.

G20 countries will develop stablecoins based on recommendations from the Financial Stability Board (SPS) and the Anti-Money Laundering Development Group (FATF), which will provide relevant conclusions in 2020.

“Until the risks associated with stablecoins are eliminated, they cannot be released” – summed up the head of the Japanese central bank, Haruhiko Kuroda.

He emphasized that emerging economies are already concerned about the potential of stablecoins with a huge user base, but not only they should be afraid.

Note that the meeting of the IMF and the World Bank is held October 14-21 in Washington.

In turn, the G-7 concluded yesterday that cryptocurrencies, including Bitcoin (BTC), have so far failed to prove that they can become a “reliable and attractive” means of payment or preservation of value.

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Meanwhile, in latest statement, IMF head Christine Lagarde noted that central banks and financial regulators should not put undue pressure on innovation, including cryptocurrencies, in an effort to protect consumers.

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