IMF calls for global regulation of stablecoins – Bits Media

The International Monetary Fund is concerned about the lack of regulation of stablecoins across jurisdictions. This could negatively impact the global financial system.

The IMF in its report “On global financial stability for 2021 year"
stated, that stablecoins pose a risk, since they do not have a common regulatory system for all countries. In this regard, the IMF calls for “global standards for crypto assets”. The organization believes, that this will help prevent the “risk of contamination” of adjacent markets.

The report also states, that stablecoin issuers do not provide enough information about how their value is guaranteed. As a result, investors do not fully understand, where to invest money. The August audit of Tether is given as an example., who showed, what 50% The stablecoin's collateral is in securities. IMF believes, that securities collateral is not enough, since they cease to be liquid in the event of a financial crisis. So stablecoins, believe in the IMF, should be regulated the same way, like traditional currencies.

The IMF points out that, that the stablecoin market capitalization has reached the level, comparable to some large offshore traditional FX funds, and therefore deserves close attention from regulators. The IMF sees danger in, that attacks by criminals or regulatory influence on stablecoins could weaken the financial system.

The development of uniform methods for regulating stablecoins is at an early stage. Financial Stability Board posted progress 48 countries regarding compliance with recommendations for regulating stablecoins, where it says, that G20 members are still in the first stage of rule development.

Previously Bank for International Settlements (TO) posted a draft directive, according to which payments in stablecoins must comply with international payment standards, clearing and settlements. US Senator Cynthia Lummis believes, that stablecoins should be fully backed by fiat currency and issued by banks.