Since the beginning of 2019, the private sector has launched a number of initiatives to create new payment products. Two notable differences compared to crypto-assets: the indexation of the value of these new products on an underlying asset (one or more currencies, a commodity, etc.) and the potential volume of users given the promoters of these initiatives. They therefore require close scrutiny, particularly in terms of consumer protection and anti-money laundering, but also with regards to potential systemic consequences.
The French presidency of the G7 decided to add this topic to its agenda in order to examine the risks and opportunities linked to stablecoins. To this end, it set up a working group whose tasks include assessing the ability of these initiatives to comply with the highest standards of security and resilience in the following areas: consumer and data protection, the prevention of money laundering and terrorist financing, preservation of the integrity of payment systems, operational and cyber resilience, and preservation of financial stability. Their investigation is based on a comprehensive risk analysis, with the objective of achieving a globally consistent approach. The group submitted a report to the G7 Ministers and Governors in October 2019.
The G7 works in close cooperation with other international fora, such as the G20, the CPMI (Committee on Payments and Market Infrastructures), the FSB (Financial Stability Board), and the FATF (Financial Action Task Force), which are examining more specific aspects of stablecoins.
Documents from the G7 :
Updated on: 10/29/2019 10:12