WEF releases CBDC and stablecoin resource kits for regulators and business leaders
The World Economic Forum (WEF) has released a resource kit designed to let lawmakers and individuals in the private sector understand digital assets including central bank digital currencies and stablecoins.
Friday, World Economic Forum Announce Its digital currency governance alliance white paper series, a resource kit created by 85 organizations from 40 countries/regions around the world. The publication contains eight separate white papers, discussing topics such as the impact of lawmakers’ regulation of stablecoins and central bank digital currencies or CBDCs, and introducing readers to their risks, benefits, and alternatives. In addition, the kit addresses the regulatory gap of digital assets and their potential use in further financial inclusion and cross-border assistance.
“Investor and consumer protection is still essential for cryptocurrencies and stablecoins,” said Anne Richards, CEO of Fidelity International, one of the companies that contributed to the publication. Anne Richards) said. “The Digital Currency Governance Alliance focuses on this important topic and has made valuable contributions in mapping consumer risks and regulatory gaps, providing information for future policy making.”
According to the World Economic Forum, different world governments can benefit from the cooperation between CBDC and stablecoins to solve the illegal activity prevention, consumer protection, and cross-border arrangements of CBDC that may have regulatory gaps. The organization’s white paper on resolving the regulatory gap specifically pointed out that if digital currency is compromised due to loopholes or other loopholes, it may lack network security and thus have the ability to cause a “comprehensive systemic financial crisis.”
The framework proposed by WEF to prevent and resolve the gaps and inconsistencies between stablecoins and CBDC involves institutions forming a working group consisting of senior leaders who focus on certain risk areas and personnel involved in the development of some current digital asset standards composition. According to the white paper, this approach can “lay the foundation for sustainable innovation, adjust the regulatory framework and promote a higher level of international cooperation.”
The new resource kit follows the WEF publishing guidelines Regulators and policymakers Regarding the regulations on decentralized finance in June. The organization said at the time that the publication provided a basis for examining key factors related to DeFi regulations.