FSB Warns of Stablecoin, AI Risks Ahead of G20 Meeting

The Financial Stability Board flagged gaps in stablecoin regulation and threats from artificial intelligence as key financial risks ahead of a meeting of Group of 20 finance ministers.

Cointelegraph reported on October 12 that FSB Chair Andrew Bailey, in a letter released the same day, warned that cross-border supervision and crisis-management frameworks for stablecoins remain immature or are not yet in place. In the FSB’s 2025 review of 28 jurisdictions, only 11 had completed stablecoin regulatory frameworks.

In a report released alongside the letter, the FSB warned that large-scale stablecoin redemptions could spill over into traditional financial markets through forced sales of reserve assets and withdrawals of bank deposits. It also said stablecoins involving multiple issuers pose an added risk because redemption demand may concentrate on a single issuer while reserve assets are spread across multiple jurisdictions.

Bailey also raised concerns about AI. “AI requires continued close attention alongside prudent oversight by financial institutions,” he wrote. The FSB said AI could enable sophisticated cyberattacks that threaten the stability of key financial institutions and market infrastructure. The final AI guidance the FSB issued covers organization-wide governance, AI development and deployment, cybersecurity, and risks tied to third-party service providers.

The FSB submitted the letter ahead of the G20 finance ministers and central bank governors meeting scheduled for Thursday.