FSB flags cross-border stablecoin risks, AI cyber threats for G20

stablecoin risks — The Financial Stability Board (FSB) has flagged persistent cross-border stablecoin oversight gaps and AI-driven cybersecurity threats in a letter to G20 finance ministers ahead of their meeting on Thursday, October 12, 2026.

In the letter published Monday, FSB Chair Andrew Bailey warned that mechanisms for supervising cross-border stablecoins and managing potential crises “remain immature or are not yet developed.” The global watchdog’s 2025 review found only 11 of 28 surveyed jurisdictions had finalized stablecoin regulatory frameworks.

The FSB’s accompanying report highlighted that stablecoin runs could spill into traditional financial markets through forced sales of reserve assets and bank deposit withdrawals. It also identified risks for multi-issuer stablecoins where redemption demand could concentrate on a single issuer while reserves are held across different jurisdictions.

Bailey also urged G20 members to support the FSB’s newly finalized practices for responsible AI adoption in finance, covering governance, development, deployment, cybersecurity and third-party risks. He warned that AI-enabled cyber threats could undermine the resilience of critical financial institutions and market infrastructure.