FSB Chairman: Most of the existing stable currencies do not meet the forthcoming global standards

It is reported that Klaas Knot, chairman of the Financial Stability Board (FSB), said that the FSB would complete its guidance on the regulation of cryptocurrency and stable currency by July, which aims to strengthen the governance framework, redemption and stabilization mechanism of stable currency. Klaas Knot said that many of the existing stable currencies did not meet the upcoming international norms. The FSB said last week that it would work with other standard-setting bodies to determine how DeFi should be regulated. It also planned to publish a document with the International Monetary Fund (IMF) on regulatory issues related to cryptocurrencies.

Interpretation of this information:

The chairman of the Financial Stability Board (FSB), Klaas Knot, has announced that the FSB will finalize its guidance on regulating cryptocurrency and stable currency by July, aimed at enhancing the governance framework, redemption, and stabilization mechanism of stable currency. Knot stated that many existing stable currencies did not meet upcoming international norms, indicating that they may not be sustainable in the long run. In a bid to regulate decentralized finance (DeFi), the FSB will collaborate with other standard-setting institutions. Additionally, the FSB is teaming up with the International Monetary Fund to publish a document on regulatory issues concerning cryptocurrencies.

The announcement by Knot shows that the FSB is taking a proactive step in regulating the crypto market while attempting to maintain market stability. The FSB’s focus on ensuring that stable currencies meet global norms aims to establish a strong framework for regulation while promoting transparency and accountability. The FSB seems to acknowledge that stable currencies are becoming increasingly popular and now wants to monitor and regulate them more closely.