Stablecoins present new dilemmas for regulators as mass adoption looms
A close look at the policy issues relating to the potential impact of stablecoins on financial systems and economies around the world. Stablecoins present peculiar challenges to regulators. Although there is no single, agreed-upon definition of a stablecoin, the common denominator of the commonly used definitions is that stablecoins are designed to maintain a stable value in relation to a specified currency, asset or pool of such currencies/assets. They are contrasted with regular cryptocurrencies, which have no such stability mechanism and whose values tend to fluctuate, sometimes even....
Related News
To become a global digital leader, Europe needs a diverse and competitive digital ecosystem. Europe knows it will have to embrace a digital euro soon. To become a global digital leader and avoid dependence on American and Asian technological infrastructures, European policymakers and regulators have to make progressive decisions.A critical stumbling block for Europe’s digital economic thinking is so-called stablecoins. Stablecoins can be privately issued and have the potential to become globally accepted and systemically relevant, disrupting long-established financial systems.....
Emerging technology such as blockchain can change the world for the better, but regulation and innovation must work in tandem. There is often a perceived tension between regulation and innovation. A pervasive narrative has emerged that these two important parts of our society are at odds with each other. In reality, it’s when these two come together as partners that we can effect change and transform our world for the better.Nowhere is this more true than in the blockchain industry. Over the last few months, we’ve seen seemingly reactionary regulators in different parts of the world try to....
In the last year, stablecoins have gone from representing just a tiny fraction of global cryptocurrency trading volume to more than half of it. This, because more users than ever before now use stablecoins to exit volatility, invest, and make payments. But in order for stablecoins to truly achieve mass adoption, they need to appeal […]
Crypto mass adoption means that it’s time to think about the wider market who will be interested in many of the lower-risk, lower-reward types of DeFi services. Easy-to-adopt, as well as customized solutions, are necessary so as not to alienate potential users. In the world of stablecoins and especially fiat-pegged stablecoins in particular, the US […]
Hodling is nice, but eventually, everyone wants to buy something. This is why crypto debit and credit cards are key to mass adoption. Out of the many routes available to the mass adoption of cryptocurrencies, which includes decentralized finance (DeFi), layer-one protocols, nonfungible tokens and stablecoins, perhaps the simplest and most applicable path for the public at large is the ability to utilize cryptocurrency for everyday purchases with an integrated debit or credit card.2021 has seen a growing number of companies offer cryptocurrency-based credit cards that give holders the....