Stablecoins like USDT and USDC are quickly becoming the internet’s favorite money. All over the world, digital dollars are powering a new wave of finance because they are cheap to move, fast to settle, and free from the red tape of traditional banking.
We see it daily at Juicyway. Our users utilise stablecoins to send remittances, protect their savings, run cross-border businesses, and navigate unstable local currencies.
But while global users lean in, global regulators are starting to lean back—with concern.
The warning from the FSB
This month, Klaas Knot, Chair of the Financial Stability Board (FSB)—the G20’s global finance watchdog—issued a sharp warning:
“Stablecoins can look stable—until they’re not. Without proper oversight, they could threaten global financial systems.”
It’s a wake-up call from one of the world’s most influential financial voices. So what’s the real concern? And what does it mean for users?
Who is the FSB?
The Financial Stability Board is a global body made up of central banks, regulators, and finance ministries from the G20 countries, plus organizations like the IMF, World Bank, and BIS.
The FSB doesn’t create laws—but it sets the global tone for financial regulation. When it flags something as a threat, policymakers across the world usually respond.
What’s the concern with stablecoins?
Stablecoins are cryptocurrencies pegged to fiat currencies, typically the U.S. dollar. They offer the benefits of crypto—speed, global reach, low fees—without the volatility.
But regulators see cracks beneath the surface. Here’s why:
- Stablecoins are not always fully backed: Some issuers use risky or opaque assets to back coins, raising the chance of collapse.
- No safety nets: Unlike banks, there’s no deposit insurance or lender of last resort if something goes wrong.
- Unregulated growth: Many stablecoins operate outside financial oversight, leaving users and markets exposed.
- Cross-border risks: In weaker economies, stablecoins can undermine local currencies and bypass capital controls.
Think back to TerraUSD’s collapse in 2022, a run on a major stablecoin that wiped out billions in user value overnight. That’s the scenario the FSB wants to avoid.
What then is the FSB is calling for?
The FSB isn’t anti-stablecoin—it’s pro-stability. Its recommendations include:
- Backing stablecoins with high-quality, liquid reserves (like U.S. Treasuries, not commercial paper or crypto).
- Requiring transparent disclosures about reserves and redemptions.
- Making issuers operate under regulated financial frameworks.
- Ensuring global coordination on how stablecoins move across borders.
They’ve urged G20 countries to implement stablecoin rules by end of 2025.
Why you should Care
Whether you're:
- Sending money to family abroad,
- Holding USDT as digital savings,
- Running a business that accepts stablecoin payments,
- Or building on-chain financial tools…
…these regulatory shifts could directly impact how you use and access stablecoins in the near future.
You can expect
- Tighter rules in some regions
- More regulated (but safer) stablecoin platforms
- Greater clarity around what’s trustworthy and what’s risky
This is what we think
Stablecoins have played a huge role in opening up access to dollar liquidity, especially in countries where inflation, currency controls, or slow banking infrastructure block opportunity.
But with scale comes responsibility.
We support regulations that:
- Protect users
- Ensure transparency
- Promote fair access
- Don’t choke innovation
The wild west days of stablecoins are ending, and that’s a great thing. The future looks like secure, user-focused digital dollars—and we’re building toward it.
Just like every financial revolution, stablecoin has run into its biggest test: how to scale safely.
The world may love stablecoins, Juicyway does too. We’re watching closely, and so should you.
