The Financial Stability Board (FSB) has highlighted significant risks regarding cross-border stablecoin operations and artificial intelligence in the financial sector. In a letter to G20 finance ministers and central bank governors, FSB Chair Andrew Bailey emphasized that current oversight mechanisms for stablecoins remain underdeveloped.
According to the FSB’s 2025 review, only 11 out of 28 surveyed jurisdictions have completed their regulatory frameworks for stablecoins. The board warned that potential stablecoin runs could negatively impact traditional markets through forced asset sales and bank deposit withdrawals, particularly in cases involving multi-issuer structures.
Regarding artificial intelligence, the FSB has finalized 12 practices for responsible adoption, focusing on governance, deployment, and cybersecurity. Bailey noted that AI-driven cyber threats could compromise the stability of critical financial infrastructure, urging G20 members to implement stronger safeguards.
These concerns align with previous warnings from European regulators, including European Central Bank President Christine Lagarde, who noted similar redemption risks in 2025. The FSB's latest guidance aims to coordinate international regulatory priorities ahead of the upcoming G20 meeting.
