FSB flags stablecoin and AI risks ahead of G20 meeting

• The Financial Stability Board has outlined financial stability risks linked to artificial intelligence, global stablecoins and market volatility.
• Its accompanying stablecoin note examines cross-border vulnerabilities and monitoring under existing international recommendations.
• G20 finance ministers and central bank governors are due to consider the reports at their 15 October meeting.

The Financial Stability Board (FSB) has presented G20 leaders with reports covering artificial intelligence, stablecoins and wider financial stability risks.

The package includes a letter from FSB Chair Andrew Bailey ahead of the G20 finance ministers’ and central bank governors’ meeting on 15 October.

The FSB said safe adoption of AI across the financial system would remain an important part of its agenda next year.

Its stablecoin note examines cross-border vulnerabilities and ways authorities can identify and monitor potential threats to financial stability.

The FSB also called for stronger cross-border cooperation and information sharing to support implementation of its 2023 stablecoin recommendations.

Other reports address regulatory and supervisory modernisation, responsible AI practices and the implementation of agreed financial reforms.

The package also covers sovereign bond market volatility, private credit vulnerabilities and temporary public-sector support for banks undergoing resolution.

The initiative places international coordination at the centre of efforts to monitor emerging financial stability risks.