BIS Newsletter for August 2019 - G7 Working Group on Stablecoins Article

The monthly BIS Newsletter is just below. One article that stands out for me is the one about the G7 working group on stable coins (see some excerpts further below).

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August 2019

Group of Seven update on stablecoins A G7 working group has discussed stablecoin initiatives and identified key issues to be resolved, says Benoît Cœuré, Chair of the Committee on Payments and Market Infrastructures. A full report will be produced in October.

Margin requirements for non-centrally cleared derivatives The Basel Committee and the International Organization of Securities Commissions extend the implementation of margin requirements for non-centrally cleared derivatives by one year. Alexandre Tombini to join the BIS The former Governor of the Central Bank of Brazil will start in his new position as Chief Representative for the Americas on 1 September 2019.

Stronger international bank lending Global cross-border bank claims posted their largest quarterly increase since 2007 in the first quarter of 2019, boosting annual growth to 4.5%.

William Coen reflects on his years at the Basel Committee William Coen recently left his job as Secretary General of the Basel Committee on Banking Supervision. In this episode of BISness, he looks back at his years at the helm of the global standard setter for the prudential regulation of banks. ---------------------------------------------------------------------------------------------- G7 Working Group on Stablecoins excerpts: "Within many countries, existing payment systems generally provide for accessible, safe and efficient retail payments for consumers. Nevertheless, access to payment services needs to improve in many regions, and cross-border payments ought to be faster and cheaper. New technologies have the potential to address these shortcomings and deliver greater benefits to users. Originally envisioned as an accessible and borderless way to pay, crypto-assets have generally suffered from severe price volatility and limited capacity to process transactions compared with existing arrangements. Consequently, they function primarily as risky investments or a shadowy means to pay, and have not achieved a scale that could entail a material imprint on the payments and financial system. The developers of the crypto-assets labelled "stablecoins" seek to reduce volatility by anchoring the "coin" to a reference asset (eg a sovereign currency) or a basket of assets. While issuance and usage of stablecoins to date have been limited, a number of new stablecoin initiatives backed by large technology companies or financial institutions could have the potential for widespread adoption." . . . . "Significant work by stablecoin developers and further engagement with the public and authorities will be required before they can expect approval by relevant authorities, as the above considerations can only be adequately addressed by ensuring transparency and making more detailed information available for proper assessment."