Financial Stability Board Expands Distributed Ledger Research

FSB
3 November 2016

An international body of regulators and government officials created in the wake of the 2008 financial panic is expanding its work on blockchain.

Since as early as last year, the Financial Stability Board has been researching the tech and its impact on the global financial system. The most recent update from the group was in July, when it said it was exploring “possible steps to address potential risks” related to digital currencies.

In a 3rd November speech at the Chatham House Banking Revolution Conference, FSB secretary general Svein Andresen suggested that the organization was beginning to move toward making policy recommendations related to the technology.

He told attendees:

“We have considered the financial stability implications of distributed ledger technology, and we continue to work in this area, jointly with Committee on Payments and Market Infrastructures, to identify key issues that market participants and policymakers need to address.

Andresen went on to say that the FSB was working alongside the Basel Committee on Banking Supervision, a body within the Bank of International Settlements (BIS), on similar issues.

“This has covered members’ experimentation with distributed ledger technology and what they have learned, as well as experiences with innovation facilitators – sandboxes, hubs, and accelerators,” he remarked.

Andresen’s speech focused in part on fintech more broadly, suggesting that any policy recommendations from the FSB will likely be within that context. He gave no indication as to when the FSB might move to begin releasing the results of its work.

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