Global watchdog flags stablecoin risks, AI threats ahead of G20
Summary
The Financial Stability Board warned G20 officials that cross-border stablecoin oversight and crisis-management arrangements remain underdeveloped; only 11 of 28 surveyed jurisdictions had finalized regulatory frameworks. It said stablecoin runs could spill into traditional markets through forced sales of reserve assets and bank-deposit withdrawals, while multi-issuer structures may complicate redemptions across jurisdictions. The FSB also urged G20 support for its finalized AI practices for financial firms, covering governance, deployment, cybersecurity and third-party risks, and warned that AI-enabled cyber threats could undermine critical institutions and market infrastructure.
