FSB Chairman Klaas Knot wrote the letter ahead of a crucial G20 meeting. The meeting will address issues related to digital assets, the tokenisation of financial assets and artificial intelligence. Knot warns of the fundamental changes that digitisation is bringing to finance: "Digitisation is fundamentally changing how finance works and how the sector is organised." He also stresses the need to "harness the opportunities of digital innovation while containing the associated risks" to ensure financial stability and prosperity.
Discussions at the G20, now chaired by Brazil, are focusing on non-bank financial intermediation, climate change, cross-border payments and, above all, digital innovation. Another working paper on the implications of asset tokenisation and artificial intelligence for financial stability is expected later this year. The FSB, along with other major financial institutions such as the IMF, the EU and the BIS, stresses the importance of regulating and overseeing these innovations so as not to compromise global financial stability.
