By Huw Jones

LONDON, Oct 13 (Reuters)Central banks set out to regulate cross-border stablecoins like Facebook’s planned Libra with a common approach on Tuesday, saying more rules may later be needed to ensure stability.

The prospect of a currency-backed stablecoin being used by billions of people on Facebook has galvanised central banks into putting together rules and into considering how they could launch their own digital currency.

Existing national rules do not fully cover stablecoins the Financial Stability Board (FSB) said in a statement, adding that regulators should ensure that global stablecoins are fully accountable, keep data safely, have effective safeguards against cyber attacks and money laundering.

The FSB said it will take “appropriate actions” to ensure implementation of the guidance to avoid regulatory gaps that could undermine financial stability, by adhering to all applicable regulatory standards, addressing risks to financial stability before commencing operation, and adapting to new regulatory requirements as necessary.

The FSB, which groups central banks and financial regulators from the Group of 20 Economies (G20) and put a draft version of its recommendations to public consultation in April, said stablecoins could bring efficiencies to cross-border retail payments, which tend to be slow and expensive.

“A widely adopted stablecoin with a potential reach and use across multiple jurisdictions could become systemically important,” the FSB said in a report to G20 finance ministers.

“Authorities agree on the need to apply supervisory and oversight capabilities and practices under the ‘same business, same risk, same rules’ principle,” it said.

Regulators for bank capital and anti-money laundering will report by December 2021 on whether rule changes are needed. A review of how stablecoins are being regulated will be completed by July 2023, the FSB added.

(Reporting by Huw Jones; Editing by Alexander Smith)

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These money rules are a good idea in normal circumstances, but they may not be realistic for everyone right now.

Money rules are a smart way to manage your finances and set yourself up for success in the future. But there’s one problem with these rules: Many of them only work when you’re financially stable. During emergencies that affect your income (like a global pandemic causing widespread unemployment) you could find that you’re not able to follow the same advice as before.

If your financial situation has changed during the COVID-19 pandemic, it may be time to take a break from following these money rules:

1. Pay yourself first

Paying yourself first is arguably the golden rule for personal finance. It works for anyone, but it’s especially helpful for consumers who have trouble with saving. By putting away money for yourself as soon as you get your paycheck, you’ll guarantee a growing bank account.

As smart as this is, it’s only doable if your income is greater than your expenses. If not — especially if you’ve lost your income because of COVID-19 — then you’ll need to put saving money on hold. In this situation, prioritizing bills and caring for your well-being are more important.

2. Make your bill payments on time

If your income has dropped and you aren’t able to reduce your expenses, you could reach a point where you can’t afford your bills. Normally, missed bill payments would result in late fees and significant damage to your credit score. That’s not necessarily the case right now, though.

During the pandemic, many companies have been offering hardship plans for customers who can’t pay in full. These types of plans could allow you to pay a smaller amount or defer your payments entirely up to a certain amount of

Happy Wednesday and welcome back to On The Money. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.



Donald Trump wearing a suit and tie: On The Money: Trump gambles with new stimulus strategy | Trump cannot block grand jury subpoena for his tax returns, court rules | Long-term jobless figures rise, underscoring economic pain


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On The Money: Trump gambles with new stimulus strategy | Trump cannot block grand jury subpoena for his tax returns, court rules | Long-term jobless figures rise, underscoring economic pain

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THE BIG DEAL-Trump gambles with new stimulus strategy: President Trump is taking a huge political and economic risk by walking away from negotiations with Democrats on a coronavirus relief package just four weeks before the election.

Trump on Tuesday abruptly put a halt to talks between Treasury Secretary Steven Mnuchin and Speaker Nancy Pelosi (D-Calif.) until after Election Day, accusing the Democratic leader of not negotiating in “good faith” despite some signs of progress between top negotiators in recent weeks.

The president later relented somewhat, urging Congress to send him smaller stand-alone bills based on areas of broad agreement instead of a sweeping measure sought by Pelosi and Mnuchin. But Trump’s approach has frustrated Republicans and business groups and thrust the prospect of future assistance into further uncertainty.

“The economy as a whole is not making a lot of progress,” said Claudia Sahm, a former senior economist and research director at the Federal Reserve. “There are real human costs – today and years from now – of not sending money out and turning it into a political battle,” Sahm added. The Hill’s Morgan Chalfant and I

Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective.

My parents both retired in their early 60s with enough money and sources of recurring income to live comfortably for 25+ years (my dad died eight years ago, but my mom is still alive at 86).

In their retirement years, they drove to Vermont to go fishing on Lake Champlain almost every weekend in the summer, and they spent their winters in Florida. In each place, they had a modest home and a small boat, in addition to their primary home and investment property in the Berkshires in Western Massachusetts.

They were not wealthy by any means — my dad grew up on a small farm and managed an auto parts store; my mom, the daughter of Polish immigrants who worked in the textile mills in my hometown, was a secretary. They never lived extravagantly, but they seemed to know instinctively when to spend money on things that had value, and when to save.

While my own financial circumstances are very different from my parents’, their example has informed how I handle money and plan for my own retirement. Here’s what I’ve learned.

Debt is (usually) not your friend

My parents paid every bill they received when they received it, never carried a credit card balance, and only made large purchases if they could pay for them in cash.

The big exception was 50+ years ago when they bought the two-family home they were renting, as well as the two-family house next door. Back then, my dad was able to talk his way into 100% financing with a local banker

South Korea is seeking to restore its reputation for fiscal soundness once pandemic spending is over by imposing a legal cap on public debt.

The government plans to limit debt at 60% of gross domestic product and its fiscal deficit at 3% from 2025, according to planned finance ministry fiscal rules released Monday. The plan needs to be approved by parliament.

While the new rules still look strict compared with the debt levels of some other developed economies, especially Japan’s, they represent a loosening from a long-time goal of keeping debt at 40% of GDP.

Debt Control

Korea wants to cap debt at 60% of economic output from 2025

Source: Finance Ministry (2020 includes extra budgets.)

The rules aim to ensure the sustainability of public spending and prepare against mid-to-long term risks, the ministry said. At least one of the two new criteria needs to be met, and measures to recover fiscal health must be put together if the limits are breached, the statement said.

Fiscal policy will continue to fulfill its role as the “last bastion” of support for the economy, but at the same time, the government wants to ensure future generations inherit a strong fiscal balance, Finance Minister Hong Nam-ki said in a statement.

South Korea’s policy makers have long sought to keep a tight rein on debt, citing an aging population and potential reunification costs with North Korea. The government shed its frugal stance once the pandemic struck, pushing ahead with four extra budgets that included a universal cash handout.

The country’s debt ratio is expected to rise to 43.9% this year from 37.7% in 2019, and hit 58.3% by 2024, according to next year’s budget proposal. Some policy makers worry that the pace of debt increase could risk the country’s credit rating. Moody’s Investors