G7 and G20 reports on stablecoins: lessons and opportunities for industry players

The first conclusions of the G7 and FSB reports are clear: considering the potential risks that innovative projects enabling simplified international payments are placing on the monetary policy, the financial stability and integrity of the markets, these initiatives will only be able to develop if they strictly comply with all the applicable international rules and standards.

The standards in question are not restricted to anti-money laundering and combating the financing of terrorism (AML-CFT). On the one hand, the G7 insisted on respecting (i) standards in terms of operational resilience and cybersecurity; (ii) rules ensuring the protection of data; and (iii) those pertaining to the protection of consumers and investors. On the other, the FSB report announced future works to facilitate the emergence of regulatory and supervisory approaches suited to these global projects.

We agree that no global stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks are adequately addressed, through appropriate designs and by adhering to regulation that is clear and proportionate to the risks. Beyond regulation, the preservation of public prerogatives or core elements of monetary sovereignty will have to be taken into account.

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