In a bold move, the Basel Committee on Banking Supervision proposes significant adjustments to the classification of stablecoins versus unbacked cryptocurrencies, triggering a crucial debate in the global financial ecosystem.
The BCBS seeks to raise the standard, proposing 11 rules that address banks' exposure to cryptoassets, focusing on aspects such as credit maturity, liquidity and asset reserve.
As regulators seek to safeguard investments, new proposals introduce redemption risk tests and additional measures in crisis situations.
A key focus is attention to the maturity of reserve assets, prioritizing short-term assets to minimize risks in massive withdrawals during periods of stress.
The committee advocates investing in high-quality products, such as central bank reserves, and highlights the importance of assets with lower volatility to ensure price stability. The proposal underlines the need for a robust risk management framework to monitor credit, market and concentration risks.
The new regulations insist that reserve assets be traded in liquid markets of considerable size, ensuring sufficient liquidity. Additionally, they impose strict disclosure requirements, allowing authorities to assess risks and conduct comprehensive analyses.
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