The scrutiny of Fiat-pegged Cryptos
A concept note for a roundtable discussion on the FSB recommendations on Stablecoins
The world of Cryptocurrencies took a giant leap when we all got introduced to the word Stabecoins — an external value pegged crypto-asset which allows us to control our asset values vis-a-vis the extreme volatility faced regularly on the crypto markets.
After 18 June 2019, it was impossible to mention the word ‘stablecoin’ and avoid the elephant in the room, a little project called Libra. The introduction of this Facebook project stirred up an emotional hornet’s nest around the world sending all regulators scampering for their law books to stop it in its tracks.
On April 14, 2020, the Financial Stability Board (FSB) addressed in a consultative document the challenges spurred by the emergence of stablecoins in the global financial market. Fiat-pegged cryptocurrencies are coming under scrutiny, based on recommendations from the Financial Stability Board.
The 10 recommendations of the FSB has put a spot of bother among the cryptocurrency lovers across the world. With over 72 active stablecoins (according to blockchain research company BlockData) and over 134 under development, this sure raises some concerns for the industry:
- What are the real concerns of the FSB in relation to stablecoins?
- How can businesses across the world allay these concerns?
- What is the possibility and/or viability of such a ban?
- Is it legally contestable in courts of law in various jurisdictions if such a ban comes into effect?
- How will it affect the crypto market if such a ban comes to be implemented?
- How should businesses across the world prepare?
- Will the so-called CBDCs be treated differently?
We would like to discuss these and some more areas to find out the legal, political, and economic ramifications of these recommendations with some global experts.
Hence we are getting some brilliant people together in this roundtable discussion and analyzing this proposition.
The Roundtable Knights
For this roundtable, we were absolutely lucky and stoked to on-board some amazing members of the global crypto and blockchain community. We thought about have representations from various fields — someone who has been in global crypto and financial policy-making, legal, users of stablecoins, exchange (which uses a lot of these stablecoins in their trades), and a stablecoin itself. This, we thought would give a 360-degree view of how this conundrum of the FSB can be dealt with.
- Shikha Mehra, Co-Founder, Mainchain Research and Consulting
- Hongzhuang Lim, CEO, Shuttle One
- Loretta Joseph, Fintech and Regulatory Advisor, FSC — Mauritius
- Pavel Bains, CEO, Bluzelle
- Vijay Ayyar, Head of Business — Asia, Luno
- Kory Hoang, CEO & Founder, Stably Corporation
Our Guests
Shikha Mehra, a certified Bitcoin professional and co-founder of MainChain Research & Consulting, is a prominent figure in the Blockchain and Crypto Currency network.
She’s on the advisory panel to IMAI’s (Internet Mobile Association of India) subcommittee on cryptocurrency and blockchain.
Zhuang is the CEO of ShuttleOne, a fintech company based in Singapore that uses blockchain technology to provide financial services and reduce friction between digital assets and local currencies.
Zhuang is a banker turned agriculture farmer before jumping into the world of blockchain. Zhuang graduated with a BSc from the Singapore Management University.
Loretta is a public policy influencer and globally recognized as an authority in digital asset regulation and blockchain technology.
A highly dynamic, skilled banking, financial, and consulting professional with over 25 years in financial markets and related sectors, she has worked in senior management roles in major investment banks across the world.
Pavel is the CEO of Bluzelle, a decentralized database that solves the security, integrity, reliability issues facing data management.
Pavel often speaks on panels and conferences about where digital media, finance, and technology are heading. Pavel also is a contributing writer to Fast Company, Venture Beat, Forbes and The Huffington Post.
Vijay currently leads Luno’s Asia business in addition to helping build our B2B product (Luno Business) that includes suite business products and API based services as well as global partnerships. Prior to Luno, he has worked at Google, YouTube, and PwC leading a number of business and commercial initiatives. He received my MBA from INSEAD and graduated with a degree in Electrical Engineering from IIT Bombay.
Kory Hoang is the CEO and Founder of Stably, a VC-backed Seattle FinTech company that’s an industry leader in the stablecoin space. Prior to founding Stably, Kory was a Private Equity Data Analyst for PitchBook in Seattle.
Kory is also a quant who has consulted for money managers, hedge funds, and CTAs on many subjects ranging from VIX derivatives to cryptocurrencies and algorithmic trading. Kory holds a BBA with a double major in Finance and Marketing from the University of Washington — Bothell.
Special Thanks
Our entire series was ably managed and moderated by Pavel Bains, CEO, Bluzelle. He brought a 360-degree outlook in fintech, investments, DeFi, and many things blockchain and Crypto. Our gratitude to him for making these discussions much more focussed and directed.
