The Bank for International Settlements’ (BIS) Committee on Payments and Market Infrastructures (CPMI) and the International Organisation of Securities Commissions (IOSCO), have published final guidance confirming that stablecoin arrangements should observe international standards for payment, clearing and settlement systems, according to a BIS press release. Investopedia defines stablecoins as cryptocurrencies that have their value pegged, or tied, to that of another currency, commodity or financial instrument.
The BIS statement said that the final guidance on stablecoin arrangements, which follows October 2021’s proposals for consultation “reconfirms that if a stablecoin arrangement performs a transfer function and is determined by authorities to be systemically important, the stablecoin arrangement as a whole would be expected to observe all relevant principles of the Principles for Financial Market Infrastructures (PFMI).
“This guidance is a major step forward in applying ‘same risk, same regulation’ to systemically important stablecoin arrangements that are used for payments. It is also a key contribution to the G20 cross-border payments programme and supports the work of the Financial Stability Board (FSB) in this area,” the statement added.