The Financial Stability Board (FSB) is an international agency responsible for supervising and making recommendations on the global financial system. It promotes international financial stability by coordinating national financial authorities and international standard setting agencies to formulate strong regulatory, supervisory and sectoral policies. FSB can promote fair competition in financial markets by encouraging consistent implementation of these policies across departments and jurisdictions. Through its members, the Financial Stability Board works to strengthen the financial system and improve the stability of international financial markets. The policies formulated to achieve this agenda are implemented by jurisdictions and national authorities.
Stable coin is a crypto digital asset designed to maintain a stable value relative to a specified asset or asset pool or a basket of assets, such as USDT, USDC, etc., which are anchored to the U.S. dollar and maintained at a 1:1 ratio. The prefix “global” means that this stable coin spans multiple jurisdictions. The concept of “global stable coin” was formally put forward for the first time in the Global Assessment Evaluation Report of the G7 Stable Coin Working Group in October 2019, which mainly referred to Libra. Libra is defined in the Libra white paper as: it is a global universal digital currency with low price volatility and low inflation realized on the blockchain, which uses basket of bank deposits and short-term treasury bonds as reserve assets.
In the report, FSB emphasized three characteristics that distinguish GSC from other crypto assets and stable coins: (1) Stability mechanism, including asset correlation mechanism and algorithm correlation mechanism. (2) The combination of various functions and activities, such as issuing, redeeming, stabilizing and transferring stable coins, and providing users with interactive functions of storage and transaction. (3) The potential influence and use power across multiple jurisdictions—the technical infrastructure on which the stability currency project is based is not limited by the geographical scope.
