News & Views

Daniel Heller - Regulatory Affairs Advisor


Recent Posts

Part 3: Trading of Stablecoins and Token Wrapping

In the previous parts of this series, we’ve been looking at the regulation needed in order to encourage the adoption of stablecoins for retail payments (read Part 1 and Part 2 here).  

Notwithstanding the similarities between bank deposits and stablecoins, there are some notable differences. For instance, a stablecoin issuer can allow the stablecoin to be listed on (crypto) exchanges and trading venues. In contrast to stablecoins, bank deposits are not tradable, i.e. there is no secondary market for bank deposits. In practice, issuers of the stablecoins are also operating the exchanges where their stablecoins are traded alongside other cryptoassets. But stablecoins can also be listed on...

Part 2: Regulating payments made with stablecoins

Since the first discussions over a global stablecoin started in 2019, international standard-setting bodies have been developing and refining recommendations for the regulation, supervision and oversight of global stablecoin arrangements (FSB 2020 and FSB 2022). In the first blog of this series, we looked at the issuance and redemption of stablecoins, but now we want to focus on the risks and benefits from the opportunity to make payments with stablecoins, and how this should be regulated. 

Part 1: Regulating the Issuance and Redemption of Stablecoins

In 2019, when a Facebook-led consortium announced its plans to launch the global stablecoin ‘Libra’, many – including politicians and high-level representatives of the G7 - thought that a new international financial system, arguably outside of the realm of regulators was about to emerge. This conclusion was mainly rooted in a mindset that the blockchain technology underpinning stablecoins would compromise the reach and effectiveness of regulators. In hindsight, such fears have turned out to be unfounded. Even though the Libra project has been wound down, the international standard-setting bodies under the auspices of the Financial Stability Board (FSB) have been developing and refining...

Fixing cross-border payments: the essential steps

Improving cross-border payments has become a top agenda item of global policy makers. The G20 has made “enhancing cross-border payments” a priority in 2019, and it continues to be a priority for 2021 under the Italian G20 presidency. The Financial Stability Board (FSB) has launched an extensive roadmap last year, as well: “Faster, cheaper, more transparent and more inclusive cross-border payment services, including remittances, while maintaining their safety and security, would have widespread benefits for citizens and economies worldwide”. In fact, this October the FSB published measurable targets for addressing four key challenges in cross-border payments: cost, speed, access and...

Payment Systems and the Role of Central Banks

Taking steps toward tokenised financial markets

As we build out financial market infrastructures (FMIs) based on distributed ledger technology (DLT), face-to-face human interaction has much to contribute to the pace and direction of progress. This truth was self-evident at SWIFT’s Sibos 2019 conference, attended by 11,000-plus delegates at ExCeL London. I was privileged to moderate a panel discussion on the possible paths toward efficient digital cash settlement; a prerequisite step to realising new efficiencies, risk reductions and value in DLT-based financial markets.

Bridging the divide

We often read that we live in an increasingly polarised society, retreating too easily into digital echo chambers, inhabited only by like-minded souls. We also see divided opinions in the financial sector, such as over the adoption of technology innovations. When assailed on either side by fierce optimists and implacable sceptics, the pragmatist will remember that any new platform multiplies its chances of success by attracting a large and diverse range of participants.

Among the new technologies being explored, the crypto asset space is perhaps the most controversial. Certainly, it has earned many column inches, from Bitcoin’s surges in Q4 2017 and Q3 2019 to Libra’s recent launch. True...

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