The Bank for International Settlements has released regulatory recommendations for global stablecoin arrangements

ChainCatcher news, the Bank for International Settlements has proposed global stablecoin regulatory recommendations. The recommendations aim to address the financial stability risks posed by global stablecoins at both domestic and international levels, while supporting innovative and flexible regulatory approaches.
Key recommendations include that global jurisdictions should be ready to regulate global stablecoin arrangements and ensure effective risk management frameworks. Additionally, there is a focus on aspects such as data storage, redemption rights, and prudential requirements.

The Bank for International Settlements stated that while stablecoins can enhance the efficiency of financial services, they may also pose financial stability risks. The recommendations aim to promote consistent and effective regulatory approaches across various jurisdictions.