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In July 2025, the FSB finalised its recommendations for the regulation, supervision and oversight of crypto-assets and markets and its recommendations targeted at global stablecoin Details: In a new report, the FSB said that stablecoins present challenges related to competition, consumer and investor protection, market integrity, data privacy, money We conclude that the malfunctioning of a global stablecoin’s asset management function could pose risks to financial stability given its potential size and interlinkages with the financial system. The High-level Recommendations seek to promote consistent and effective regulation, supervision and oversight of global stablecoin arrangements (GSCs) across Stablecoins, like other cryptoassets, have the potential to enhance the efficiency of how financial services are provided, but they may also generate risks to financial stability. Against this background, this paper assesses stablecoins’ implications for the euro area based on three scenarios for the uptake of stablecoins: (i) as a crypto-assets accessory function; (ii) as a High regulatory standards are required, in particular, for cryptoassets – such as stablecoins – that could be widely used as a means of payment and/or store of value, as Despite their sturdier nature, stablecoins haven’t appealed well enough to global, standard-setters like the Financial Stability Board (FSB). The FSB included the

Financial Stability Board Cautious on Stablecoins: New Report Raises Concerns

The Financial Stability Board (FSB) is expressing caution regarding stablecoins in a newly released report, highlighting potential risks despite their intended stability. The report underscores that even with their sturdier nature, stablecoins haven’t appealed well enough to global, standard-setters like the Financial Stability Board (FSB). The FSB included the concerns in its latest findings.

FSB Report: Stablecoins and Financial Stability Risks

The report details that stablecoins, like other cryptoassets, have the potential to enhance the efficiency of how financial services are provided, but they may also generate risks to financial stability. The FSB emphasizes these risks in the context of competition, consumer and investor protection, market integrity, data privacy, and money laundering. In a new report, the FSB said that stablecoins present challenges related to competition, consumer and investor protection, market integrity, data privacy, money laundering, and more.

FSB Recommendations for Stablecoin Regulation

In July 2025, the FSB finalised its recommendations for the regulation, supervision and oversight of crypto-assets and markets and its recommendations targeted at global stablecoin arrangements (GSCs). The High-level Recommendations seek to promote consistent and effective regulation, supervision and oversight of global stablecoin arrangements (GSCs) across jurisdictions. High regulatory standards are required, in particular, for cryptoassets – such as stablecoins – that could be widely used as a means of payment and/or store of value, as the FSB believes this is crucial to mitigating systemic risk.

Potential Impact of Stablecoin Malfunctions

The FSB report specifically addresses the potential ramifications of a poorly managed global stablecoin. We conclude that the malfunctioning of a global stablecoin’s asset management function could pose risks to financial stability given its potential size and interlinkages with the financial system. This highlights the need for robust regulatory oversight and stringent risk management practices.

Stablecoins and the Euro Area: A Scenarios-Based Assessment

The FSB's concerns mirror anxieties expressed elsewhere, including within the Eurozone. Against this background, this paper assesses stablecoins’ implications for the euro area based on three scenarios for the uptake of stablecoins: (i) as a crypto-assets accessory function; (ii) as a more integrated payment solution; and (iii) as a widely adopted alternative currency. All scenarios require careful monitoring and regulation to prevent adverse effects on financial stability and monetary policy.

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