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Key takeaways
- Stablecoins‘ linkages with the traditional financial system are growing, which raises policy challenges ranging from preserving financial integrity to mitigating financial stability risks.
- Broader use of foreign currency-denominated stablecoins could raise concerns about monetary sovereignty and, in some jurisdictions, erode the effectiveness of existing foreign exchange regulations.
- The principle of „same risks, same regulation“ faces limitations in the context of stablecoins, highlighting the need for tailored regulatory approaches that address the nature and specific features of stablecoins.
BIS Bulletin | No 108
by Iñaki Aldasoro, Matteo Aquilina, Ulf Lewrick and Sang Hyuk Lim
>> PDF full text (474kb) | 8 pages
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Souce:
Bank for International Settlements | BIS
bis.org
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