Interoperability of stablecoins

Central bank reserves could be a better option for backing stablecoins than Treasuries, say Manmohan Singh, Caitlin Long and Charles Kahn

global networks

Recent speeches about stablecoins from the likes of the Federal Reserve’s Randal Quarles and former Bank of England governor Mark Carney differ in many respects; however they converge on the idea of “stablecoins” backed by central bank reserves, which thereby avoids fragmenting global liquidity.

Instantaneous transmission of money over large-value payment systems works seamlessly when using central bank reserves, which permit settlement finality, but not when using other reserve assets such as

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