Financial Stability Board To Focus on Asset Tokenization and AI, Chair Says
@sanor016 #sanor016CommUNITY #Write2Earn The Financial Stability Board (FSB) will deliver reports on asset tokenization and AI later in 2024, according to Chair Klaas Knot.
In a letter dated February 20 and released February 26, Knot told G20 finance ministers and central bankers that the global financial stability outlook “remains challenging.”
Financial Stability Board Outlines Key Focus Areas for 2024 Regulation
However, the Financial Stability Board has a strategy in place as Knot explained in the letter, which was meant as preparation for the meeting of ministers and bankers scheduled for February 28-29 in São Paulo, Brazil.
Priority areas for the FSB in 2024 will include non-bank financial intermediation, climate change, cross-border payments, as well as asset tokenization and AI, Knot noted in the letter.
Last year, the G20 approved a global regulatory and supervisory framework for crypto assets. The G20 Roadmap on Crypto Assets, endorsed in October, stemmed from the G20 New Delhi Leaders’ Declaration passed in July.
A Synthesis Paper jointly developed by the FSB and the International Monetary Fund introduced the roadmap.
The FSB said it would issue a progress report on the roadmap’s implementation in October.
FSB Looks to Standardize Incident Reporting Processes
The Financial Stability Board is also looking to propose a standardized format for incident reporting by facilitating the simultaneous sharing of incident reports among various financial institutions and agencies, Knot said.
“Accelerating digitalisation across all parts of finance has improved efficiencies but also increased the interconnectedness of the global financial system,”
“This increases the possibility of a cyber or operational incident at one financial institution having spillover effects across borders and sectors.”