The UAE recently participated in the 19th meeting of the Financial Stability Board Regional Consultative Group for the Middle East and North Africa (FSB RCG MENA).

The meeting took place virtually and discussed the risks facing financial stability in the region, and the work programme of Regional Consultative Group (RCG). That, in addition to the initiatives within the G20 roadmap regarding cross-border payments and digital stablecoins.

The UAE was represented by Younis Haji Al Khoori, Under-Secretary of the Ministry of Finance, and Khaled Mohamed Salem Balama Al Tameemi, Vice Governor of the Central Bank of the UAE. Dr. Fahd Al-Mubarak, Governor of the Saudi Arabian Monetary Authority (SAMA), and Rasheed Mohammed Al Maraj, Governor of the Central Bank of Bahrain co-chaired the meeting, where representatives of the ministries of finance and central banks of the MENA countries, as well as representatives from the FSB attended.

During the meeting, Al Khoori presented the latest paper developed by the UAE, which provides guidelines for jurisdictional self-assessment of the regulatory and supervisory arrangements for stablecoins. The paper was presented by the Ministry of Finance to the G20 last year, and was praised by the G20 members and the FSB.

Al Khoori noted that the judicial authorities need to evaluate whether they have the essential regulatory basis to address the risks faced by the current monetary systems related to global digital stablecoins.

"We reiterate the need to activate cooperation and coordination between governments and international organisations to devise international guidelines that support the legislative authorities’ efforts to organise and monitor digital stablecoins, build trust in these transactions, and mitigate the destabilising repercussions of the global financial stability," he added.

The meeting deliberated the latest updates related to the global financial system, especially in light of the exceptional circumstances that the world is witnessing today due to the COVID-19 pandemic. That, in addition to means of enhancing cross-border payments, where initiatives on implementing the G20 roadmap to improve payment platforms, and the regulatory and supervisory challenges related to digital currencies were presented.

At the end of the meeting, all members reiterated the importance of devising sound regulatory and supervisory frameworks for digital stablecoins arrangements, to benefit from them and facilitate fast, secure, efficient and cost-effective cross-border payments. This is to strengthen financial systems due to the risks to financial stability while supporting and adopting financial innovation.

Current members of the FSB RCG MENA include representatives of ministries of finance and central banks from the Kingdom of Saudi Arabia, Algeria, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Tunisia, Turkey and the UAE.

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