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Gungun Bhatia
Oct 10, 2022
by Gungun Bhatia

Payments Watchdog Probes Role Of Stablecoins In Cutting Foreign Costs

Stablecoins

Table of contents

  1. Enhancement Of Cross-Border Payments
  2. Development Of The Stablecoin Sector
Global payment standard-setters intend to reduce the cost of transmitting money internationally. Additionally, an international panel declared on Monday that it would investigate the potential benefits of stablecoins.

According to a study released by the Financial Stability Board (FSB), the Committee on Payment and Market Infrastructures (CPMI), an international group that establishes standards for the industry, has stated it wants to investigate the case for cryptocurrencies that want to preserve value against the fiat in the upcoming months.

Enhancement Of Cross-Border Payments

The Financial Stability Board revealed the central points for the next phase of negotiations under the G20 Framework for Enhancing Cross-Border Payments today, two years after introducing the roadmap. The plan outlines the feasible measures taken to improve external participation throughout this upcoming stage of the project.

The FSB said that the CPMI is examining if and how the implementation of well-designed and risk-managed SAs (stablecoin arrangements) might facilitate cross-border payments by resolving existing frictions, with results expected to be concluded by the end of this year. The following phase of the roadmap would concentrate on three main topics, including standardization and expansion of payment systems, frameworks for law, regulation, and supervision, and cross-border messaging and data-sharing standards.

Development Of The Stablecoin Sector

According to the paper, risk management would need special attention because of how quickly the stablecoin sector is developing and how it could influence the entire world.

A meeting of finance ministers on Wednesday would mark the launch of the FSB, supported by the Bank for International Settlements (BIS) and chaired by the President of the Netherlands' Central Bank. Plans to establish a global crypto rulebook, including sharper norms for stablecoins, are expected to be presented shortly.

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stablecoin cross border payments Financial Stability Board Bank for International Settlements (BIS) Committee on Payment and Market Infrastructures (CPMI)
Payments Watchdog Probes Role Of Stablecoins In Cutting Foreign Costs
Gungun Bhatia
Gungun is an enthusiastic writer that likes to create content for various aspects of the blockchain and crypto industry. She carries out extensive research and provides readers with informative and high-quality material.

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