<a href="https://uk.reuters.com/article/uk-g20-regulator-stablecoins/g20-sets-ground-rules-ahead-of-facebooks-libra-stablecoin-idUKKCN21W0UK" target="_blank" rel="noopener">According </a>to the regulatory watchdog The group of 20 Economies'(G20) the big. Economies of the world need to come up with a more robust rulebook and plug the gaps in order to stop facebook 's Libra from causing financial instability.

In response to the stable coin of Facebook, the Financial stability boards (FSB)   has come up with ten recommendation on Tuesday to formulate s common framework and approach towards Stablecoins.

In the eyes of FSB, even if the technology they run on is different, stablecoin should be encountering the same rules and risks along the way as other businesses.

In the current financial framework, the payment and customer checks departments are pretty much the same for all, the risks associated with them.  However, when it comes to coverage there could be large gaps that could be found from one country to another. Ergo, for stablecoins like Facebook's Libra, a new cross-border system must be implemented which would be more flexible and don't lead to a face-off between two jurisdictions.

The FSB believes that the domestic regulatory powers should address the current gaps in their system to avoid the risks and damage Stabelcoine can cause.

They also advise Facebook's Libra or even other stablecoins operation to be more resolute and transparent in their approach and take steps to counter money laundering and protect its customers from centre attacks. 
<h2>Woes of Facebook's Libra Continues</h2>
Facebook's Libra projects started off with a lot of backing initially with Visa, Vodafone and PayPal offering full support, but their interest cooled off and they dropped out of it after seeing the complexities of the process and how the central banks make it clear that they can not allow it to be launched till a proper system is in place.

The fears of FSB make sense as the reach of Facebook would instantly convert it into a rival of the government-backed currencies.

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Facebook's Libra Needs to be Monitored Closely- FSB

FSB believes leading economies need to plug gaps in their rulebooks to avoid digital currencies like Facebook’s Libra from undermining financial stability.

Zain is a fervid fan of bitcoin and has been meticulously covering the field for a fair amount of time now. An aficionado of Spider man, Liverpool and Slim Shady.

Facebook's Libra Needs to be Monitored Closely- FSB

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