Stablecoins pose risks to singleness of money – BoE study
Paper explores how monetary cohesion might be preserved amid digital innovation
A new study published by the Bank of England suggests stablecoins may pose risks to the singleness of money.
The working paper, published on February 27, models when the singleness of money might break down, given the rise of new private digital forms of currency, and how it might be protected.
The author, Benjamin Hemingway, says the singleness of money is “an equilibrium outcome shaped by institutional design, market structure and policy choices”.
According to Hemingway’s model, conversion
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