De Nederlandsche Bank published remarks by President Klaas Knot, speaking in his capacity as Chair of the Financial Stability Board, on how regulators should balance financial innovation with financial stability when addressing crypto-asset activities and cross-border payments. Knot stressed that the FSB is technology-agnostic and “does not pick winners”, focusing instead on ensuring innovation develops safely within public policy objectives. He pointed to the 2019 Libra announcement as an example of how quickly a cross-border innovation can create systemic concerns, and described the global response as resting on two pillars: the FSB’s high-level stablecoin recommendations (issued in 2020 and revised in 2023) and the G20 Cross-Border Payments Roadmap. Knot argued that many stablecoins perform functions similar to e-money and bank deposits yet can operate outside existing regulatory frameworks, reinforcing the “same activity, same risk, same regulation” principle. He highlighted run and spillover risks from large stablecoins, including through short-term funding markets, and called for consistent cross-jurisdictional implementation of FSB guardrails on transparency, governance and risk management to limit regulatory arbitrage. On cross-border payments, he noted persistent inefficiencies and the lack of an overarching global governance framework, and described ongoing work by the FSB with the Committee on Payments and Market Infrastructures and others to align technical standards and legal, regulatory and supervisory frameworks.
De Nederlandsche Bank 2025-06-07
Netherlands' De Nederlandsche Bank's Knot calls for consistent stablecoin regulation and coordinated cross-border payments reforms
De Nederlandsche Bank President Klaas Knot, Chair of the Financial Stability Board (FSB), emphasized balancing financial innovation with stability in crypto-asset activities and cross-border payments. He highlighted the FSB's technology-agnostic stance and the importance of consistent stablecoin regulation implementation to mitigate systemic risks. Knot also addressed inefficiencies in cross-border payments and efforts to align global standards and frameworks.