The latest edition of Oaklen Consulting's Industry Watch highlights the latest developments in Stablecoin.

• One year after its first white paper, the Libra association updates its ambitions by taking into account the numerous reactions and concerns raised by the first version:
  - The creation of Libra dedicated to a single fiat currency (Euro, USD, ...) thus departing from the "global stablecoin" philosophy
  - A KYC program vis-à-vis the association's members and resellers
  - A principle of reinforced monitoring of members when Libra will switch to a "permissionless" model
  - The backing of funds "deposited" by users on totally liquid media or very short-term government securities.
  Although this new version has elicited very little reaction from the authorities, this does not mean that they agree with it.
• The European Parliament is interested in crypto-assets in general and would like to put forward a uniform legal regime to apply in Europe. Indeed, we are currently navigating, depending on the country, between the financial instrument and the electronic currency, and this vagueness does not encourage investment in the sector. In addition, the European Parliament recommends great vigilance in terms of cybersecurity, especially for intermediaries between crypto-assets and fiat currency. This could lead to the application of internal control principles similar to those of financial institutions to these players.
  
  
• After proposing a 3-point definition of Global Stablecoin to distinguish it from other crypto-assets, the Financial Stability Board (FSB) identifies the risks associated with Global Stablecoin and proposes principles for oversight to be applied by the various regulators worldwide. Interestingly, the FSB considers that there is no need to create a specific regulator on this topic, but that existing bodies (FATF, Basel Committee, Payments and Market Infrastructures Committee, ...) can cover the topic.
  
  
• The association and lobbyist Positive Money proposes an implementation scheme for a Digital Central Bank Currency (DCBC) adapted to a developed economy like the UK.
  
  
• For its part, the Banque de France is launching a call for projects for MBDC experiments in France. The objective is to show if and how the MBDC can be adapted, or even more relevant, than the "classic" central bank money in the context of 3 "wholesale" settlement use cases. The selection of projects is planned for the summer of 2020.
  
  

For more information and the complete watch: contacteznous@oaklen.eu

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