There’s quite a fuss going among our kinds about the Financial Stability Board (FSB) “Addressing the regulatory, supervisory and oversight challenges raised by ‘global stablecoin’ arrangements” 67-pages-long ‘consultative document’ published April 14 on FSB’s site.
Extract (google): “FSB is an international body that monitors and makes recommendations about the global financial system. It was established after the G20 London summit in April 2009 as a successor to the Financial Stability Forum (FSF)”.
On a page 24 FSB lists its 10 ‘recommendations’ for governments to implement in order to “help authorities to determine their regulatory, supervisory and oversight approaches to mitigate potential risks to financial stability and market integrity, and risks for users (consumers) that GSCs may pose”.
Clearly, it shouldn’t surprise none of us that in 2020 crypto-currencies are still considered by governments as ‘clear and present danger’ to their power — not as an opportunity to upgrade their medieval mentality and obsolete XVI century financial and banking systems.
Here’s the list of those “recommendations” with my comments:
1) “Authorities should have and utilise the necessary powers and tools, and adequate resources, to comprehensively regulate, supervise, and oversee a GSC arrangement and its multi-functional activities”. Well, it still fells short of the complete ban but they will be there sooner rather than later.
2) “Authorities should apply regulatory requirements to GSC arrangements on a functional basis and proportionate to their risks.” Of course, frying the bigger fish first is what bureaucrats know to do best.
3) “Authorities should ensure that there is comprehensive regulation, supervision and oversight of the GSC arrangement across borders and sectors.” Authorities producing a “comprehensive regulation” which is unified across borders during the epoch of trade wars and nationalistic politics — we’ll see how it goes.
4) “Authorities should ensure that GSC arrangements have in place a comprehensive governance framework with a clear allocation of accountability for the functions and activities within the GSC arrangement.” Again, “comprehensive governance” that is not something which we have been accustom during past 20 years or so.
5) “Authorities should ensure that GSC arrangements have effective risk management frameworks in place especially with regard to reserve management, operational resiliency”. Oh, now they start to be nervous. A long shot from 2018 disdainful declarations of IMF chiefs :)
6) “Authorities should ensure that GSC arrangements have in place robust systems for safeguarding, collecting, storing and managing data.” “Robust systems” “managing data” for governments? We all know how really “robust” all those gigantic silos are, don’t we?
7) “Authorities should ensure that GSC arrangements have appropriate recovery and resolution plans.” Just one more line to add into the financial budget for that “initiative”.
8) “Authorities should ensure that GSC arrangements provide to users and relevant stakeholders comprehensive and transparent information necessary to understand the functioning of the GSC arrangement”. “Transparent information”? Really?
9) “Authorities should ensure that GSC arrangements provide legal clarity to users on the nature and enforceability of any redemption rights and the process for redemption, where applicable.” In this context “legal clarity” simply means creating a new bonanza for trolls in Harvard suits, and corporate lawyers.
10) “Authorities should ensure that GSC arrangements meet all applicable regulatory, supervisory and oversight requirements of a particular jurisdiction”. It will take time. A lot of it uselessly spent.
It’s a real shame that in the time when millions of small and medium businesses are wiped out all across the world because of the reckless and politically motivated decisions taken by unaccountable bureaucrats, the few remaining technical tools, which are still available for private entrepreneurs to effectively manage their business, are aggressively persecuted by the same kind of people, which can’t even assure that there are enough beds and medical masks available when they are really needed.
Link: https://www.fsb.org/wp-content/uploads/P140420-1.pdf
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